Analysts Expect Breakeven For iHeartMedia, Inc. (NASDAQ:IHRT) Before Long
With the business potentially at an important milestone, we thought we'd take a closer look at iHeartMedia, Inc.'s (NASDAQ:IHRT) future prospects. iHeartMedia, Inc. operates as an audio media company in the United States. The US$373m market-cap company posted a loss in its most recent financial year of US$473m and a latest trailing-twelve-month loss of US$286m shrinking the gap between loss and breakeven. The most pressing concern for investors is iHeartMedia's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Consensus from 4 of the American Media analysts is that iHeartMedia is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$8.2m in 2027. The company is therefore projected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 121% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for iHeartMedia given that this is a high-level summary, but, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Check out our latest analysis for iHeartMedia
Before we wrap up, there’s one issue worth mentioning. iHeartMedia currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
This article is not intended to be a comprehensive analysis on iHeartMedia, so if you are interested in understanding the company at a deeper level, take a look at iHeartMedia's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:
- Valuation: What is iHeartMedia worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether iHeartMedia is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on iHeartMedia’s board and the CEO’s background.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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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.