As you might know, Getty Images Holdings, Inc. (NYSE:GETY) recently reported its third-quarter numbers. Revenues came in at US$229m, in line with estimates, while Getty Images Holdings reported a statutory loss of US$0.05 per share, well short of prior analyst forecasts for a profit. 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.
See our latest analysis for Getty Images Holdings
After the latest results, the eight analysts covering Getty Images Holdings are now predicting revenues of US$971.9m in 2024. If met, this would reflect a reasonable 5.4% improvement in revenue compared to the last 12 months. Getty Images Holdings is also expected to turn profitable, with statutory earnings of US$0.17 per share. Before this earnings report, the analysts had been forecasting revenues of US$979.8m and earnings per share (EPS) of US$0.17 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$6.62, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Getty Images Holdings at US$8.50 per share, while the most bearish prices it at US$5.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Getty Images Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 4.3% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.5% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10% annually. So it's clear that despite the acceleration in growth, Getty Images Holdings is expected to grow meaningfully slower than the industry average.
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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Getty Images Holdings' revenue is expected to 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 estimates - from multiple Getty Images Holdings analysts - going out to 2025, and you can see them free on our platform here.
Even so, be aware that Getty Images Holdings is showing 1 warning sign in our investment analysis , 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.