Investors in Starz Entertainment Corp. (NASDAQ:STRZ) had a good week, as its shares rose 2.2% to close at US$19.79 following the release of its first-quarter results. It was a pretty bad result overall; while revenues were in line with expectations at US$307m, statutory losses exploded to US$9.83 per share. 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’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, Starz Entertainment’s eight analysts currently expect revenues in 2026 to be US$1.26b, approximately in line with the last 12 months. Per-share losses are expected to explode, reaching US$18.57 per share. Before this latest report, the consensus had been expecting revenues of US$1.27b and US$3.75 per share in losses. So it’s pretty clear the analysts have mixed opinions on Starz Entertainment even after this update; although they reconfirmed their revenue numbers, it came at the cost of a massive increase in per-share losses.
Check out our latest analysis for Starz Entertainment
Although the analysts are now forecasting higher losses, the average price target rose 19% to 20.75, which could indicate that these losses are expected to be “one-off”, or are not anticipated to have a longer-term impact on the business. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Starz Entertainment analyst has a price target of US$42.00 per share, while the most pessimistic values it at US$13.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
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. We would also point out that the forecast 0.3% annualised revenue decline to the end of 2026 is better than the historical trend, which saw revenues shrink 4.0% annually over the past three years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 8.3% annually. So it’s pretty clear that, while it does have declining revenues, the analysts also expect Starz Entertainment to suffer worse than the wider industry.
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‘ Some details of this article were extracted from the following source finance.yahoo.com ’
