KE Holdings Jumps 5.17% After Q1 Profit Beats Estimates Despite 19% Revenue Drop
Updated
Updated · The Motley Fool · May 19
KE Holdings Jumps 5.17% After Q1 Profit Beats Estimates Despite 19% Revenue Drop
1 articles · Updated · The Motley Fool · May 19
Summary
KE Holdings shares rose 5.17% after first-quarter earnings beat forecasts, with non-GAAP net income climbing to more than 1.6 billion yuan from nearly 1.4 billion yuan a year earlier.
1.42 yuan in earnings per ordinary share topped the 1.02 yuan consensus estimate, while revenue of 18.9 billion yuan also edged past expectations despite falling 19% year over year.
712 billion yuan in gross transaction value was down nearly 16%, driven largely by a more than 37% slump in new-home transaction GTV.
Management said efficiency gains, resource reallocation and a pullback from weaker segments such as home renovation and furnishing helped support profitability.
China's stronger real-estate market a year earlier made comparisons tougher, and investors appeared to focus on KE Holdings' shift from scale-led growth toward higher-efficiency services.