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Earnings Update: BBTV Holdings Inc. (TSE:BBTV) Just Reported And Analysts Are Trimming Their Forecasts

·3-min read

BBTV Holdings Inc. (TSE:BBTV) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasters. BBTV Holdings missed analyst estimates, with revenues of CA$100m and a statutory loss per share (eps) of CA$0.67 falling 7.7% and 9.8% below expectations, respectively. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for BBTV Holdings

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Taking into account the latest results, the current consensus, from the three analysts covering BBTV Holdings, is for revenues of CA$418.4m in 2022, which would reflect a small 7.2% reduction in BBTV Holdings' sales over the past 12 months. Per-share losses are predicted to creep up to CA$2.30. Before this latest report, the consensus had been expecting revenues of CA$454.3m and CA$2.05 per share in losses. While this year's revenue estimates dropped there was also a noticeable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target fell 27% to CA$1.77, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. 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 BBTV Holdings at CA$2.75 per share, while the most bearish prices it at CA$1.30. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 14% by the end of 2022. This indicates a significant reduction from annual growth of 35% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 15% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - BBTV Holdings is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of BBTV Holdings' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple BBTV Holdings analysts - going out to 2023, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 4 warning signs for BBTV Holdings that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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