Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Genius Sports Limited (NYSE:GENI) After Its Second-Quarter Report
It's been a pretty great week for Genius Sports Limited (NYSE:GENI) shareholders, with its shares surging 13% to US$7.03 in the week since its latest second-quarter results. Revenues were in line with expectations, at US$95m, while statutory losses ballooned to US$0.09 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Genius Sports
Following the latest results, Genius Sports' 13 analysts are now forecasting revenues of US$509.8m in 2024. This would be a notable 15% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 52% to US$0.23. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$500.0m and losses of US$0.16 per share in 2024. So it's pretty clear the analysts have mixed opinions on Genius Sports even after this update; although they reconfirmed their revenue numbers, it came at the cost of a massive increase in per-share losses.
As a result, there was no major change to the consensus price target of US$9.27, 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. The most optimistic Genius Sports analyst has a price target of US$12.00 per share, while the most pessimistic values it at US$7.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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 analysts are definitely expecting Genius Sports' growth to accelerate, with the forecast 32% annualised growth to the end of 2024 ranking favourably alongside historical growth of 23% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Genius Sports to grow faster 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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$9.27, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Genius Sports going out to 2026, and you can see them free on our platform here..
We also provide an overview of the Genius Sports Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.
