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Shareholders of Beasley Broadcast Group, Inc. (NASDAQ:BBGI) will be pleased this week, given that the stock price is up 11% to US$2.65 following its latest yearly results. Revenues of US$206m arrived in line with expectations, although statutory losses per share were US$0.63, an impressive 22% smaller than what broker models predicted. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for Beasley Broadcast Group from solitary analyst is for revenues of US$242.0m in 2021 which, if met, would be a decent 17% increase on its sales over the past 12 months. Earnings are expected to improve, with Beasley Broadcast Group forecast to report a statutory profit of US$0.32 per share. Before this earnings report, the analyst had been forecasting revenues of US$244.0m and earnings per share (EPS) of US$0.18 in 2021. There was no real change to the revenue estimates, but the analyst does seem more bullish on earnings, given the great increase in earnings per share expectations following these results.
The consensus price target rose 33% to US$4.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analyst is definitely expecting Beasley Broadcast Group's growth to accelerate, with the forecast 17% growth ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.7% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Beasley Broadcast Group to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Beasley Broadcast Group's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Beasley Broadcast Group (1 doesn't sit too well with us) you should be aware of.
This article by Simply Wall St is general in nature. 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.
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