Getty Images Holdings, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The quarterly results for Getty Images Holdings, Inc. (NYSE:GETY) were released last week, making it a good time to revisit its performance. It looks like a pretty bad result, all things considered. Although revenues of US$229m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 52% to hit US$0.01 per share. 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.

View our latest analysis for Getty Images Holdings

After the latest results, the six analysts covering Getty Images Holdings are now predicting revenues of US$933.5m in 2024. If met, this would reflect a credible 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 20% to US$0.11. In the lead-up to this report, the analysts had been modelling revenues of US$938.2m and earnings per share (EPS) of US$0.12 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at US$5.74, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values Getty Images Holdings at US$7.70 per share, while the most bearish prices it at US$3.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the 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. One thing stands out from these estimates, which is that Getty Images Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.0% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.8% annual decline over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 10% annually for the foreseeable future. Although Getty Images Holdings' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Getty Images Holdings. 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 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.

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 forecasts for Getty Images Holdings going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Getty Images Holdings (at least 1 which is potentially serious) , and understanding them should be part of your investment process.

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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.