Analysts Have Made A Financial Statement On BuzzFeed, Inc.'s (NASDAQ:BZFD) Annual Report

Investors in BuzzFeed, Inc. (NASDAQ:BZFD) had a good week, as its shares rose 5.1% to close at US$4.91 following the release of its yearly results. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 3.2%to hit US$398m. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for BuzzFeed

Taking into account the latest results, the most recent consensus for BuzzFeed from three analysts is for revenues of US$535.2m in 2022 which, if met, would be a sizeable 35% increase on its sales over the past 12 months. Statutory earnings per share are forecast to drop to approximately break-even in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$539.8m and earnings per share (EPS) of US$0.005 in 2022. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a EPS estimates.

There's been no real change to the consensus price target of US$6.33, with BuzzFeed seemingly executing in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic BuzzFeed analyst has a price target of US$7.50 per share, while the most pessimistic values it at US$5.50. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. It's clear from the latest estimates that BuzzFeed's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 7.7% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect BuzzFeed to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for BuzzFeed. 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 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 profits. We have forecasts for BuzzFeed going out to 2024, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for BuzzFeed 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.