Yahoo Finance Nexstar Media Group, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Investors in Nexstar Media Group, Inc. (NASDAQ:NXST) had a good week, as its shares rose 3.4% to close at US$172 following the release of its first-quarter results. It looks like a credible result overall - although revenues of US$1.3b were what the analysts expected, Nexstar Media Group surprised by delivering a (statutory) profit of US$5.16 per share, an impressive 30% above what was forecast. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Nexstar Media Group
Taking into account the latest results, the current consensus from Nexstar Media Group's ten analysts is for revenues of US$5.56b in 2024. This would reflect a decent 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 103% to US$25.27. Before this earnings report, the analysts had been forecasting revenues of US$5.57b and earnings per share (EPS) of US$24.78 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$199, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Nexstar Media Group at US$225 per share, while the most bearish prices it at US$170. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Nexstar Media Group's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 12% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nexstar Media Group to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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 forecasts for Nexstar Media Group going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Nexstar Media Group has 3 warning signs (and 1 which is significant) we think you should know about.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
