iHeartMedia, Inc. (NASDAQ:IHRT) Full-Year Results: Here's What Analysts Are Forecasting For This Year
Last week, you might have seen that iHeartMedia, Inc. (NASDAQ:IHRT) released its annual result to the market. The early response was not positive, with shares down 2.6% to US$2.26 in the past week. The statutory results were mixed overall, with revenues of US$3.8b in line with analyst forecasts, but losses of US$7.39 per share, some 8.3% larger than the analysts were predicting. The analysts 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for iHeartMedia
Taking into account the latest results, the current consensus from iHeartMedia's eight analysts is for revenues of US$3.94b in 2024. This would reflect a modest 5.0% increase on its revenue over the past 12 months. Per-share statutory losses are expected to explode, reaching US$0.12 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.96b and earnings per share (EPS) of US$0.084 in 2024. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.
As a result, there was no major change to the consensus price target of US$3.50, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on iHeartMedia, with the most bullish analyst valuing it at US$7.00 and the most bearish at US$2.00 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that iHeartMedia's rate of growth is expected to accelerate meaningfully, with the forecast 5.0% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that iHeartMedia is expected to grow much faster than its industry.
The Bottom Line
The biggest low-light for us was that the forecasts for iHeartMedia dropped from profits to a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple iHeartMedia analysts - going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 3 warning signs for iHeartMedia (2 can't be ignored!) that we have uncovered.
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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.
