Beasley Broadcast Group, Inc. (NASDAQ:BBGI) Just Reported And Analysts Have Been Cutting Their Estimates
Beasley Broadcast Group, Inc. (NASDAQ:BBGI) shareholders are probably feeling a little disappointed, since its shares fell 5.5% to US$0.86 in the week after its latest yearly results. Revenue hit US$247m in line with forecasts, although the company reported a statutory loss per share of US$2.51 that was somewhat smaller than the analyst expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
View our latest analysis for Beasley Broadcast Group
Following last week's earnings report, Beasley Broadcast Group's sole analyst are forecasting 2024 revenues to be US$251.7m, approximately in line with the last 12 months. Statutory losses are forecast to balloon 97% to US$0.08 per share. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$265.9m and earnings per share (EPS) of US$0.08 in 2024. There looks to have been a significant drop in sentiment regarding Beasley Broadcast Group's prospects after these latest results, with a minor downgrade to revenues and the analyst now forecasting a loss instead of a profit.
The analyst lifted their price target 11% to US$2.50, implicitly signalling that lower earnings per share are not expected to have a longer-term impact on the stock's value.
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 1.9% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.03% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 3.3% annually. So it's clear that despite the acceleration in growth, Beasley Broadcast Group is expected to grow meaningfully slower than the industry average.
The Bottom Line
The most important thing to take away is that the analyst is expecting Beasley Broadcast Group to become unprofitable next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Beasley Broadcast Group. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Beasley Broadcast Group going out as far as 2025, and you can see them free on our platform here.
Even so, be aware that Beasley Broadcast Group is showing 2 warning signs in our investment analysis , and 1 of those is significant...
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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.
