Investors in BuzzFeed, Inc. (NASDAQ:BZFD) had a strong week, with its shares rising 5.1% to close at US$4.91 following the release of its annual results. Overall, results were a bit better than analysts expected, with revenue beating forecasts by 3.2% to $398 million. Analysts typically update their forecasts with each earnings report, and we can judge from their estimates if their view of the business has changed or if there are new concerns to consider. So we’ve rounded up the latest post-earnings guidance to see what the estimates suggest for next year.
See our latest analysis for BuzzFeed
Given the latest results, the most recent consensus for BuzzFeed from three analysts is for revenue of US$535.2 million in 2022, which, if achieved, would represent a massive 35% increase in sales. over the past 12 months. Statutory earnings per share are expected to fall roughly to break-even over the same period. Looking ahead to this report, analysts had modeled revenue of US$539.8 million and earnings per share (EPS) of US$0.005 in 2022. Analysts appear to have turned more bearish after the latest results. Although there was no change in the revenue forecast, there was an EPS estimate.
There was no real change in the consensus price target of US$6.33, with BuzzFeed appearing to perform in line with expectations. The consensus price target is only an average of individual analyst targets, so it might be useful to see how wide the range of the underlying estimates is. The most optimistic BuzzFeed analyst has a price target of US$7.50 per share, while the most pessimistic puts it at US$5.50. As you can see, analysts aren’t all in agreement on the stock’s future, but the range of estimates is still reasonably narrow, which might suggest the outcome isn’t entirely unpredictable.
One way to get more context on these forecasts is to examine how they compare both to past performance and to the performance of other companies in the same industry. It’s clear from the latest estimates that BuzzFeed’s growth rate is set to accelerate significantly, with an annualized revenue growth forecast of 35% through the end of 2022 significantly faster than its historic growth of 7.7. % per year over the last three years. Compare that with other companies in the same industry, which are expected to grow revenue by 4.0% per year. It seems obvious that while growth prospects are brighter than in the recent past, analysts also expect BuzzFeed to grow faster than the industry as a whole.
The biggest concern is that analysts have cut their earnings per share estimates, suggesting headwinds may be coming for BuzzFeed. Fortunately, there have been no major changes in the revenue forecast, with the business still expected to grow faster than the industry as a whole. There was no real change from the consensus price target, suggesting that the company’s intrinsic value has not undergone major changes with the latest estimates.
With that in mind, we wouldn’t be too quick to come to a conclusion on BuzzFeed. Long-term earnings power is much more important than next year’s earnings. We have predictions for BuzzFeed through 2024, and you can view them for free on our platform here.
However, you should always think about the risks. Concrete example, we spotted 2 warning signs for BuzzFeed you should be aware.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.