As you might know, Corus Entertainment Inc. (TSE:CJR.B) recently reported its quarterly numbers. It looks like the results were a bit of a negative overall. While revenues of CA$468m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.5% to hit CA$0.37 per share. Earnings are an important time for investors, as they can track a company’s performance, look at what top analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. We thought readers would find it interesting to see analysts’ latest (statutory) post-earnings forecasts for next year.
Following last week’s earnings report, Corus Entertainment’s eight analysts are forecasting 2020 revenues to be CA$1.67b, approximately in line with the last 12 months. Before this earnings result, analysts had predicted CA$1.67b revenue in 2020, although there was no accompanying EPS estimate. From what we can see of these results, it looks like Corus Entertainment is performing in line with analyst expectations. The analysts we track have all updated their numbers following the results, and there were no major changes to their forecasts for next year.
There’s been no real change to the consensus price target of CA$8.00, with Corus Entertainmentseemingly executing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Corus Entertainment analyst has a price target of CA$11.00 per share, while the most pessimistic values it at CA$6.00. 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.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. We would highlight that sales are expected to reverse, with the forecast 0.9% revenue decline a notable change from historical growth of 17% over the last five years. Compare this with our data, which suggests that other companies in the same market are, in aggregate, expected to see their revenue grow 2.4% next year. It’s pretty clear that Corus Entertainment’s revenues are expected to perform substantially worse than the wider market.
The Bottom Line
The most important thing to take away from these updates is that analysts are definitely optimistic on the business, given that they’ve begun forecasting positive per-share earnings for next year. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. The consensus price target held steady at CA$8.00, with the latest estimates not enough to have an impact on analysts’ estimated valuations.
We have estimates for Corus Entertainment from its eight analysts , and you can see them free on our platform here.
You can also view our analysis of Corus Entertainment’s balance sheet, and whether we think Corus Entertainment is carrying too much debt, for free on our platform here.
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