That’s What Analysts Think PodcastOne, Inc. (NASDAQ:PODC) Is Worth After These Results

As you might know, PodcastOne, Inc. (NASDAQ:PODC) just kicked off its latest third-quarter results with some very strong numbers. Results overall were solid, with revenues arriving 5.5% better than analyst forecasts at US$16m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.01 per share, were 5.5% smaller than the analysts 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from PodcastOne’s three analysts is for revenues of US$73.5m in 2027. This reflects a sizeable 22% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with PodcastOne forecast to report a statutory profit of US$0.07 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$72.3m and losses of US$0.025 per share in 2027. While there’s been no material change to the revenue estimates, there’s been a pretty clear upgrade to earnings estimates, with the analysts expecting a per-share profit compared to previous expectations of a loss. So it seems like the latest results have led to a significant increase in sentiment for PodcastOne.

View our latest analysis for PodcastOne

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 28% to US$4.33. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on PodcastOne, with the most bullish analyst valuing it at US$5.00 and the most bearish at US$3.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. We can infer from the latest estimates that forecasts expect a continuation of PodcastOne’shistorical trends, as the 17% annualised revenue growth to the end of 2027 is roughly in line with the 18% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.9% annually. So although PodcastOne is expected to maintain its revenue growth rate, it’s definitely expected to grow faster than the wider industry.

The most important thing to take away is that there’s been a clear step-change in belief around the business’ prospects, with the analysts now expecting PodcastOne to become profitable next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 PodcastOne analysts – going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for PodcastOne that we have uncovered.

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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.