WideOpenWest, Inc. (NYSE:WOW) Just Reported, And Analysts Assigned A US$6.25 Price Target
It's been a mediocre week for WideOpenWest, Inc. (NYSE:WOW) shareholders, with the stock dropping 12% to US$3.04 in the week since its latest annual results. Revenues came in at US$687m, in line with expectations, while statutory losses per share were substantially higher than expected, at US$3.53 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for WideOpenWest
Taking into account the latest results, the current consensus, from the five analysts covering WideOpenWest, is for revenues of US$647.5m in 2024. This implies a small 5.7% reduction in WideOpenWest's revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 92% to US$0.29. Before this latest report, the consensus had been expecting revenues of US$653.7m and US$0.21 per share in losses. So it's pretty clear the analysts have mixed opinions on WideOpenWest even after this update; although they reconfirmed their revenue numbers, it came at the cost of a sizeable expansion in per-share losses.
The consensus price target fell 11% to US$6.25per share, with the analysts clearly concerned by ballooning losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on WideOpenWest, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$4.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. We would also point out that the forecast 5.7% annualised revenue decline to the end of 2024 is better than the historical trend, which saw revenues shrink 12% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 3.1% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect WideOpenWest to suffer worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that WideOpenWest's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of WideOpenWest's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for WideOpenWest going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 3 warning signs for WideOpenWest (1 is a bit concerning) you should be aware of.
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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.
