Results: Sinclair, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders might have noticed that Sinclair, Inc. (NASDAQ:SBGI) filed its third-quarter result this time last week. The early response was not positive, with shares down 8.0% to US$15.91 in the past week. It looks like a credible result overall - although revenues of US$917m were what the analysts expected, Sinclair surprised by delivering a (statutory) profit of US$1.43 per share, an impressive 41% above what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Sinclair

Taking into account the latest results, the current consensus, from the eight analysts covering Sinclair, is for revenues of US$3.25b in 2025. This implies a discernible 3.6% reduction in Sinclair's revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 87% to US$0.39. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$3.24b and losses of US$0.19 per share in 2025. While next year's revenue estimates held steady, there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Despite expectations of heavier losses next year,the analysts have lifted their price target 7.5% to US$17.60, perhaps implying these losses are not expected to be recurring over the long term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Sinclair at US$30.00 per share, while the most bearish prices it at US$13.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. We would also point out that the forecast 2.9% annualised revenue decline to the end of 2025 is better than the historical trend, which saw revenues shrink 11% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 3.8% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Sinclair to suffer worse than the wider 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 Sinclair. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Sinclair going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Sinclair (2 shouldn't be ignored!) that we have uncovered.

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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.