The investors in CuriosityStream Inc.'s (NASDAQ:CURI) will be rubbing their hands together with glee today, after the share price leapt 41% to US$4.63 in the week following its quarterly results. It looks like a credible result overall - although revenues of US$15m were what the analysts expected, CuriosityStream surprised by delivering a statutory profit of US$0.01 per share, instead of the previously forecast loss. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CuriosityStream after the latest results.
Taking into account the latest results, the current consensus from CuriosityStream's dual analysts is for revenues of US$60.6m in 2025. This would reflect a solid 12% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 32% to US$0.09. Before this earnings announcement, the analysts had been modelling revenues of US$57.8m and losses of US$0.06 per share in 2025. So it's pretty clear the analysts have mixed opinions on CuriosityStream even after this update; although they upped their revenue numbers, it came at the cost of a massive increase in per-share losses.
Check out our latest analysis for CuriosityStream
The average price target rose 49% to US$4.48, even thoughthe analysts have been updating their forecasts to show higher revenues and higher forecast losses.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that CuriosityStream's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that CuriosityStream is expected to grow much faster than its industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at CuriosityStream. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 analyst estimates for CuriosityStream going out as far as 2027, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for CuriosityStream that 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.