It's shaping up to be a tough period for MNTN, Inc. (NYSE:MNTN), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with US$80m revenue coming in 8.5% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.10 missed the mark badly, arriving some 50% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on MNTN after the latest results.
Following last week's earnings report, MNTN's eleven analysts are forecasting 2027 revenues to be US$326.7m, approximately in line with the last 12 months. Statutory earnings per share are expected to dive 42% to US$0.44 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$417.2m and earnings per share (EPS) of US$1.09 in 2027. It looks like sentiment has declined substantially in the aftermath of these results, with a large cut to revenue estimates and a pretty serious reduction to earnings per share numbers as well.
Check out our latest analysis for MNTN
It'll come as no surprise then, to learn that the analysts have cut their price target 46% to US$9.67. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic MNTN analyst has a price target of US$22.00 per share, while the most pessimistic values it at US$6.00. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. 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 highlight that MNTN's revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2027 being well below the historical 21% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. Factoring in the forecast slowdown in growth, it seems obvious that MNTN is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for MNTN going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with MNTN .
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