It's been a mediocre week for GCI Liberty, Inc. (NASDAQ:GLIB.A) shareholders, with the stock dropping 11% to US$69.08 in the week since its latest yearly results. Revenues were US$895m, approximately in line with what analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$18.32, an impressive 62% ahead of estimates. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.

See our latest analysis for GCI Liberty

Taking into account the latest results, GCI Liberty's two analysts currently expect revenues in 2020 to be US$899.4m, approximately in line with the last 12 months. The company is expected to report a statutory loss of US$1.28 in 2020, a sharp decline from a profit over the last year. Before this earnings announcement, analysts had been forecasting revenues of US$901.3m and losses of US$1.26 per share in 2020. Although the revenue estimates have not really changed, we can see there's been a earnings per share expectations, suggesting that analysts have become more bullish after the latest result.

The consensus price target was unchanged at US$90.20, suggesting that the business - losses and all - is executing in line with estimates.

Further, we can compare these estimates to past performance, and see how GCI Liberty forecasts compare to the wider market's forecast performance. From these estimates it looks as though analysts expect the years of declining sales to come to an end, given the flat revenue forecast for next year. That would be a definite improvement, given that the past five years have seen sales shrink five years annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 1.2% per year. Although GCI Liberty's revenues are expected to improve, it seems that analysts are still expecting it to grow slower than the wider market.

The Bottom Line

The most important thing to note from these estimates is that the consensus increased its forecast losses next year, suggesting all may not be well at GCI Liberty. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that GCI Liberty's revenues are expected to perform worse than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

It might also be worth considering whether GCI Liberty's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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