Boat Rocker Media Inc. Reported A Surprise Loss, And Analysts Have Updated Their Forecasts

Last week saw the newest quarterly earnings release from Boat Rocker Media Inc. (TSE:BRMI), an important milestone in the company's journey to build a stronger business. Revenues of CA$202m beat estimates by a substantial 89% margin, but unfortunately Boat Rocker Media fell substantially short of earnings forecasts, reporting a statutory loss of CA$0.17 per share, where the analysts had previously predicted a profit. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Boat Rocker Media

Taking into account the latest results, the current consensus, from the four analysts covering Boat Rocker Media, is for revenues of CA$341.8m in 2024. This implies a concerning 34% reduction in Boat Rocker Media's revenue over the past 12 months. Boat Rocker Media is also expected to turn profitable, with statutory earnings of CA$0.04 per share. In the lead-up to this report, the analysts had been modelling revenues of CA$392.0m and earnings per share (EPS) of CA$0.023 in 2024. So there's been quite a change-up of views after the latest results, with the analysts making a serious cut to their revenue forecasts while also granting a sizeable expansion in to the earnings per share numbers.

The analysts have cut their price target 24% to CA$3.56per share, suggesting that the declining revenue was a more crucial indicator than the expected improvement in earnings. 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. Currently, the most bullish analyst values Boat Rocker Media at CA$5.00 per share, while the most bearish prices it at CA$2.75. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 29% annualised decline to the end of 2024. That is a notable change from historical growth of 19% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.1% per year. It's pretty clear that Boat Rocker Media's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Boat Rocker Media's earnings potential next year. 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. Even so, earnings 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Boat Rocker Media going out to 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Boat Rocker Media that we have uncovered.

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.