Analysts Have Lowered Expectations For Hall of Fame Resort & Entertainment Company (NASDAQ:HOFV) After Its Latest Results
Shareholders might have noticed that Hall of Fame Resort & Entertainment Company (NASDAQ:HOFV) filed its yearly result this time last week. The early response was not positive, with shares down 5.5% to US$3.46 in the past week. Hall of Fame Resort & Entertainment reported revenues of US$24m, in line with expectations, but it unfortunately also reported (statutory) losses of US$11.97 per share, which were slightly larger than expected. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Check out our latest analysis for Hall of Fame Resort & Entertainment
Taking into account the latest results, the current consensus from Hall of Fame Resort & Entertainment's solitary analyst is for revenues of US$28.5m in 2024. This would reflect a solid 18% increase on its revenue over the past 12 months. Losses are supposed to decline, shrinking 19% from last year to US$8.82. Before this latest report, the consensus had been expecting revenues of US$40.0m and US$8.70 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analyst making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.
The analyst has cut their price target 33% to US$8.00per share, signalling that the declining revenue and ongoing losses are contributing to the lower valuation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Hall of Fame Resort & Entertainment's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 18% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.8% annually. Even after the forecast slowdown in growth, it seems obvious that Hall of Fame Resort & Entertainment is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Hall of Fame Resort & Entertainment. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
It is also worth noting that we have found 3 warning signs for Hall of Fame Resort & Entertainment (1 doesn't sit too well with us!) that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
