Today is shaping up negative for Nine Entertainment Co. Holdings Limited (ASX:NEC) shareholders, with the analysts delivering a substantial negative revision to this year’s forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following the latest downgrade, the current consensus, from the nine analysts covering Nine Entertainment Holdings, is for revenues of AU$2.3b in 2026, which would reflect an uneasy 13% reduction in Nine Entertainment Holdings’ sales over the past 12 months. Statutory earnings per share are presumed to shoot up 47% to AU$0.096. Before this latest update, the analysts had been forecasting revenues of AU$2.7b and earnings per share (EPS) of AU$0.11 in 2026. It looks like analyst sentiment has fallen somewhat in this update, with a substantial drop in revenue estimates and a minor downgrade to earnings per share numbers as well.
View our latest analysis for Nine Entertainment Holdings
It’ll come as no surprise then, to learn that the analysts have cut their price target 5.9% to AU$1.79.
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 highlight that sales are expected to reverse, with a forecast 13% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 4.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.1% per year. It’s pretty clear that Nine Entertainment Holdings’ revenues are expected to perform substantially worse than the wider industry.
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Nine Entertainment Holdings’ revenues are expected to grow slower than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we’d understand if investors became more cautious on Nine Entertainment Holdings after today.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source finance.yahoo.com ’
