US$12.33: That's What Analysts Think The Beachbody Company, Inc. (NYSE:BODI) Is Worth After Its Latest Results

The Beachbody Company, Inc. (NYSE:BODI) shareholders are probably feeling a little disappointed, since its shares fell 7.1% to US$6.96 in the week after its latest second-quarter results. It looks like the results were pretty good overall. While revenues of US$110m were in line with analyst predictions, statutory losses were much smaller than expected, with Beachbody Company losing US$1.59 per share. 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.

Check out our latest analysis for Beachbody Company

After the latest results, the consensus from Beachbody Company's three analysts is for revenues of US$435.5m in 2024, which would reflect a not inconsiderable 8.8% decline in revenue compared to the last year of performance. Losses are predicted to fall substantially, shrinking 62% to US$6.67. Before this latest report, the consensus had been expecting revenues of US$442.6m and US$7.74 per share in losses. Although the revenue estimates have not really changed Beachbody Company'sfuture looks a little different to the past, with a notable improvement in the loss per share forecasts in particular.

Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 5.1% to US$12.33. It looks likethe analysts have become less optimistic about the overall business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Beachbody Company, with the most bullish analyst valuing it at US$13.00 and the most bearish at US$12.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2024 compared to the historical decline 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 see their revenue grow 9.9% per year. So while a broad number of companies are forecast to grow, unfortunately Beachbody Company is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. 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. At Simply Wall St, we have a full range of analyst estimates for Beachbody Company going out to 2025, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 4 warning signs for Beachbody Company that you should be aware of.

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.