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CuriosityStream Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
CuriosityStream Inc. (NASDAQ:CURI) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 4.1% to hit US$21m. CuriosityStream also reported a statutory profit of US$0.08, which was an impressive 167% above what the analysts had forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the three analysts covering CuriosityStream are now predicting revenues of US$90.2m in 2027. If met, this would reflect a decent 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 45% to US$0.21. In the lead-up to this report, the analysts had been modelling revenues of US$88.8m and earnings per share (EPS) of US$0.17 in 2027. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
View our latest analysis for CuriosityStream
The consensus price target fell 24% to US$4.67, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. 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 CuriosityStream at US$6.00 per share, while the most bearish prices it at US$5.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that CuriosityStream's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 12% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 1.9% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.1% per year. Not only are CuriosityStream's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CuriosityStream's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 CuriosityStream analysts - going out to 2028, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for CuriosityStream (of which 1 is concerning!) you should know about.
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