Shenandoah Telecommunications Company (NASDAQ:SHEN) Released Earnings Last Week And Analysts Lifted Their Price Target To US$27.50
It's been a good week for Shenandoah Telecommunications Company (NASDAQ:SHEN) shareholders, because the company has just released its latest second-quarter results, and the shares gained 5.0% to US$11.99. It looks like the results were pretty good overall. While revenues of US$93m were in line with analyst predictions, statutory losses were much smaller than expected, with Shenandoah Telecommunications losing US$0.17 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Shenandoah Telecommunications' two analysts are now forecasting revenues of US$374.9m in 2026. This would be an okay 2.1% improvement in revenue compared to the last 12 months. Losses are expected to increase slightly, to US$0.91 per share. Before this earnings announcement, the analysts had been modelling revenues of US$373.9m and losses of US$0.97 per share in 2026. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.
Check out our latest analysis for Shenandoah Telecommunications
These new estimates led to the consensus price target rising 25% to US$27.50, with lower forecast losses suggesting things could be looking up for Shenandoah Telecommunications.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shenandoah Telecommunications' past performance and to peers in the same industry. We would highlight that Shenandoah Telecommunications' revenue growth is expected to slow, with the forecast 4.3% annualised growth rate until the end of 2026 being well below the historical 9.8% 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 37% annually. Factoring in the forecast slowdown in growth, it seems obvious that Shenandoah Telecommunications is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Shenandoah Telecommunications going out as far as 2028, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Shenandoah Telecommunications that you should be aware of.
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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.