KE Holdings Stock Rises 3% After Q2 Earnings and Revenue Exceed Estimates

BEIJING – KE Holdings Inc. (NYSE: BEKE) has reported impressive second-quarter earnings and revenue that exceeded analyst expectations, resulting in a 3.3% increase in shares during premarket trading on Monday.

The real estate platform, which operates both online and offline, posted adjusted earnings per American Depositary Share (ADS) of $2.28, significantly surpassing the consensus estimate of $1.60. Revenue experienced a substantial year-over-year increase of 19.9%, reaching RMB23.4 billion (approximately $3.2 billion), and also outpacing estimates of RMB22.04 billion.

KE Holdings’ robust performance was fueled by growth in existing home transaction services, as well as the expansion of its home renovation and rental segments. Revenues from existing home transactions rose 14.3% year-over-year to RMB7.3 billion (around $1.0 billion), while home renovation and furnishing revenues surged by 53.9% to RMB4.0 billion (about $0.6 billion).

"In the second quarter of this year, our series of operational enhancements and scientific management measures supported us in achieving high-quality results that notably exceeded the market performance," stated Stanley Yongdong Peng, the Chairman and CEO of KE Holdings.

The company reported a gross transaction value (GTV) of RMB839.0 billion (approximately $115.5 billion), reflecting a 7.5% year-over-year increase, driven primarily by a 25% rise in GTV from existing home transactions. However, GTV from new home transactions saw a 20.2% decline due to a sluggish market.

As of June 30, KE Holdings maintained a solid financial position, with cash and short-term investments totaling RMB59.7 billion (around $8.2 billion). The company also announced an increase in its share repurchase program from $2 billion to $3 billion, extending it through August 2025.