Analysts Are Optimistic We'll See A Profit From iHeartMedia, Inc. (NASDAQ:IHRT)

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 and internationally. With the latest financial year loss of US$1.1b and a trailing-twelve-month loss of US$899m, the US$154m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on iHeartMedia's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for iHeartMedia

According to the 5 industry analysts covering iHeartMedia, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$32m in 2024. So, the company is predicted to breakeven approximately a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 116% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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Given this is a high-level overview, we won’t go into details of iHeartMedia's upcoming projects, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. iHeartMedia currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of iHeartMedia to cover in one brief article, but the key fundamentals for the company can all be found in one place – iHeartMedia's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:

1. 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.

2. 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.

3. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com