Endeavor Group Holdings, Inc. Just Missed EPS By 6.9%: Here's What Analysts Think Will Happen Next
Investors in Endeavor Group Holdings, Inc. (NYSE:EDR) had a good week, as its shares rose 2.6% to close at US$24.80 following the release of its annual results. Revenues of US$6.0b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$1.14, missing estimates by 6.9%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Endeavor Group Holdings
Taking into account the latest results, the current consensus from Endeavor Group Holdings' twelve analysts is for revenues of US$7.29b in 2024. This would reflect a sizeable 22% increase on its revenue over the past 12 months. Statutory earnings per share are expected to sink 19% to US$0.96 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$7.47b and earnings per share (EPS) of US$0.97 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.
The consensus has reconfirmed its price target of US$30.67, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Endeavor Group Holdings' market value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Endeavor Group Holdings at US$36.00 per share, while the most bearish prices it at US$28.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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 clear from the latest estimates that Endeavor Group Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Endeavor Group Holdings is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Endeavor Group Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Endeavor Group Holdings analysts - going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Endeavor Group Holdings .
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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.
