Analysts may have been a little too optimistic about CuriosityStream Inc. (NASDAQ: CURI), given that the company fell short of expectations when it released its first quarter results last week. Revenue slightly exceeded expectations, reaching $ 9.9 million, but statutory profits fell catastrophically, with a loss of $ 0.39, 89% more than analysts had predicted. This is an important time for investors, as they can follow a company’s performance in its report, look at experts’ forecasts for next year, and see if there has been a change in the company’s expectations. company. Readers will be happy to know that we’ve aggregated the latest statutory forecast to see if analysts have changed their minds on CuriosityStream after the latest results.
Based on the latest results, the current consensus of the seven CuriosityStream analysts is for 2021 revenue of US $ 71.1 million, which would reflect a substantial 69% increase in sales over the past 12 months. . Losses are expected to drop significantly, falling 58% to US $ 0.84. Prior to this earnings announcement, analysts had modeled earnings of US $ 71.1 million and losses of US $ 0.65 per share in 2021. While this year’s earnings estimates have remained stable, there is also had a massive increase in per-share loss expectations, suggesting that the consensus has been a bit mixed on the stock.
The consensus price target has remained at US $ 20.29, which apparently implies that the higher expected losses should not have a long-term impact on the valuation of the company. There is another way to think about price targets, however, and that is to look at the range of price targets offered by analysts, as a wide range of estimates might suggest a different view of the possible outcomes for the market. company. CuriosityStream’s most bullish analyst has a price target of US $ 26.00 per share, while the most pessimistic puts it at US $ 13.00. This is a fairly wide range of estimates, suggesting that analysts are predicting a wide range of possible outcomes for the business.
Looking at the big picture now, one of the ways we can understand these forecasts is to see how they stack up against both past performance and industry growth estimates. The period through the end of 2021 brings more of the same, analysts say, with revenue forecast to show growth of 101% on an annualized basis. This corresponds to its annual growth of 87% over the past year. Compare that with the industry at large, whose analysts’ estimates (overall) suggest revenues will grow by 16% per year. So it’s pretty clear that CuriosityStream is expected to grow much faster than its industry.
The bottom line
The most important thing to note is the forecast of an increase in losses next year, suggesting that all might not be fine for CuriosityStream. Fortunately, there were no major changes to the revenue forecast, with the business still expected to grow faster than the industry as a whole. There has been no real change to the consensus price target, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
That said, the company’s long-term earnings trajectory is much bigger than next year. At Simply Wall St, we have a full range of analyst estimates for CuriosityStream through 2025, and you can see them for free on our platform here..
However, before you get too excited, we’ve found out 1 warning sign for CuriosityStream that you need to be aware of.
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