Analysts Have Been Trimming Their The Beachbody Company, Inc. (NYSE:BODY) Price Target After Its Latest Report

It's been a pretty great week for The Beachbody Company, Inc. (NYSE:BODY) shareholders, with its shares surging 16% to US$2.17 in the week since its latest annual results. The results don't look great, especially considering that statutory losses grew 80% toUS$0.83 per share. Revenues of US$882m did beat expectations by 6.8%, but it looks like a bit of a cold comfort. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Beachbody Company after the latest results.

View our latest analysis for Beachbody Company

After the latest results, the consensus from Beachbody Company's four analysts is for revenues of US$787.1m in 2022, which would reflect a chunky 11% decline in sales compared to the last year of performance. Losses are forecast to narrow 3.4% to US$0.31 per share. Before this earnings announcement, the analysts had been modelling revenues of US$787.1m and losses of US$0.31 per share in 2022.

The analysts trimmed their valuations, with the average price target falling 7.0% to US$3.31, with the ongoing losses seemingly weighing on sentiment, despite no real changes to the earnings forecasts. 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. The most optimistic Beachbody Company analyst has a price target of US$6.25 per share, while the most pessimistic values it at US$2.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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. We would highlight that sales are expected to reverse, with a forecast 11% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 6.5% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Beachbody Company is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Beachbody Company's revenues are expected to 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 2024, and you can see them free on our platform here..

You still need to take note of risks, for example - Beachbody Company has 3 warning signs we think you should be aware of.

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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.