Earnings Release: Here's Why Analysts Cut Their iHeartMedia, Inc. (NASDAQ:IHRT) Price Target To US$2.45

editorial-team@simplywallst.com (Simply Wall St)

Wed, May 14, 2025, 5:23 AM 3 min read

Shareholders of iHeartMedia, Inc. (NASDAQ:IHRT) volition beryllium pleased this week, fixed that the banal terms is up 13% to US$1.23 pursuing its latest first-quarter results. Revenues of US$807m bushed expectations by a respectable 2.5%, though statutory losses per stock increased. iHeartMedia mislaid US$1.84, which was 255% much than what the analysts had included successful their models. Following the result, the analysts person updated their net model, and it would beryllium bully to cognize whether they deliberation there's been a beardown alteration successful the company's prospects, oregon if it's concern arsenic usual. We've gathered the astir caller statutory forecasts to spot whether the analysts person changed their net models, pursuing these results.

Trump has pledged to "unleash" American lipid and state and these 15 US stocks person developments that are poised to benefit.

After the latest results, the statement from iHeartMedia's 5 analysts is for revenues of US$3.76b successful 2025, which would bespeak a measurable 2.7% diminution successful gross compared to the past twelvemonth of performance. Losses are predicted to autumn substantially, shrinking 94% to US$0.54. Before this latest report, the statement had been expecting revenues of US$3.78b and US$0.55 per stock successful losses.

Check retired our latest investigation for iHeartMedia

As a result, it's unexpected to spot that the statement terms people fell 14% to US$2.45, with the analysts seemingly becoming much acrophobic astir ongoing losses, contempt making nary large changes to their forecasts. There's different mode to deliberation astir terms targets though, and that's to look astatine the scope of terms targets enactment guardant by analysts, due to the fact that a wide scope of estimates could suggest a divers presumption connected imaginable outcomes for the business. Currently, the astir bullish expert values iHeartMedia astatine US$4.50 per share, portion the astir bearish prices it astatine US$1.25. With specified a wide scope successful terms targets, analysts are astir surely betting connected wide divergent outcomes successful the underlying business. With this successful mind, we wouldn't trust excessively heavy the statement terms target, arsenic it is conscionable an mean and analysts intelligibly person immoderate profoundly divergent views connected the business.

Taking a look astatine the bigger representation now, 1 of the ways we tin recognize these forecasts is to spot however they comparison to some past show and industry maturation estimates. We would item that gross is expected to reverse, with a forecast 3.6% annualised diminution to the extremity of 2025. That is simply a notable alteration from humanities maturation of 4.3% implicit the past 5 years. By contrast, our information suggests that different companies (with expert coverage) successful the aforesaid manufacture are forecast to spot their gross turn 2.9% annually for the foreseeable future. So though its revenues are forecast to shrink, this unreality does not travel with a metallic lining - iHeartMedia is expected to lag the wider industry.