Yahoo Finance AMC Networks Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
It's been a mediocre week for AMC Networks Inc. (NASDAQ:AMCX) shareholders, with the stock dropping 17% to US$14.71 in the week since its latest yearly results. Revenues were in line with forecasts, at US$2.7b, although statutory earnings per share came in 16% below what the analysts expected, at US$4.90 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AMC Networks after the latest results.
Check out our latest analysis for AMC Networks
Following the recent earnings report, the consensus from eight analysts covering AMC Networks is for revenues of US$2.43b in 2024. This implies a considerable 10% decline in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$4.99, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$2.64b and earnings per share (EPS) of US$6.06 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.
It'll come as no surprise then, to learn that the analysts have cut their price target 13% to US$13.67. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values AMC Networks at US$20.00 per share, while the most bearish prices it at US$11.00. 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. Over the past five years, revenues have declined around 0.009% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 10% decline in revenue until the end of 2024. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.3% per year. So while a broad number of companies are forecast to grow, unfortunately AMC Networks is expected to see its revenue affected worse than other companies in the industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on AMC Networks. Long-term earnings power is much more important than next year's profits. We have forecasts for AMC Networks going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - AMC Networks has 4 warning signs (and 2 which are concerning) we think you should know about.
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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.
