CuriosityStream Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

There's been a notable change in appetite for CuriosityStream Inc. (NASDAQ:CURI) shares in the week since its second-quarter report, with the stock down 12% to US$4.25. In addition to beating expectations by 14% with revenues of US$19m, CuriosityStream delivered a surprise (statutory) profit of US$0.01 per share, a sweet improvement compared to the losses that the analysts forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for CuriosityStream from two analysts is for revenues of US$67.4m in 2025. If met, it would imply a meaningful 11% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 64% to US$0.03. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$64.1m and losses of US$0.03 per share in 2025.

Check out our latest analysis for CuriosityStream

The analysts increased their price target 6.5% to US$5.75, perhaps signalling that higher revenues are a strong leading indicator for CuriosityStream's valuation.

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. It's clear from the latest estimates that CuriosityStream's rate of growth is expected to accelerate meaningfully, with the forecast 23% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect CuriosityStream to grow faster than 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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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.

And what about risks? Every company has them, and we've spotted 3 warning signs for CuriosityStream (of which 1 is potentially serious!) you should know about.

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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.