What Are Analysts Expecting From Qudian Inc (QD) Over The Next Year?
Qudian Inc (NYSE:QD) is expected to deliver an adverse -57.78% in earnings decline per share over the next year. With the recent EPS being CN¥25.252, expected contraction will pull down the upcoming EPS to CN¥10.661. I am going to look at the latest data on QD to assess whether this expected adverse growth is reasonable. Check out our latest analysis for Qudian
Adverse times ahead
There are dark clouds over Qudian’s potential over the next couple of years. Analysts are predicting the earnings to slide down to CN¥10.661 in the three year’s time from previous levels of around CN¥25.252. This would be a decline of -57.78%, so it will be an interesting ride. In the same period revenue is predicted to rapidly grow from CN¥3,994M CN¥7,160M and net income is predicted to decline from CN¥1,924M to CN¥3,493M in the next couple of years. But, at this level of revenue and profit, margins are predicted to be extremely healthy.
Is the contraction built on solid basis?
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is justified or whether the negative sentiment is too pessimistic. QD is expected to face a substantial shift from a previous triple-digit growth, over the past year, to a forecast double-digit decline by analysts. This is highly bearish and may be a sign of an investment period for QD, incurring higher expense growth than revenue.
Next Steps:
For QD, there are three fundamental factors you should look at: 1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. 2. Valuation: What is QD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether QD is currently mispriced by the market. 3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of QD? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
