Shareholders might have noticed that Shenandoah Telecommunications Company (NASDAQ:SHEN) filed its first-quarter result this time last week. The early response was not positive, with shares down 2.6% to US$16.05 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at US$92m, statutory losses exploded to US$0.31 per share. The 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the latest results, Shenandoah Telecommunications' twin analysts are now forecasting revenues of US$373.9m in 2026. This would be a satisfactory 3.3% improvement in revenue compared to the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching US$0.97. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$373.0m and losses of US$0.82 per share in 2026. So it's pretty clear the analysts have mixed opinions on Shenandoah Telecommunications even after this update; although they reconfirmed their revenue numbers, it came at the cost of a considerable increase in per-share losses.

Despite expectations of heavier losses next year,the analysts have lifted their price target 25% to US$27.50, perhaps implying these losses are not expected to be recurring over the long term.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Shenandoah Telecommunications' revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2026 being well below the historical 9.7% p.a. growth over the last five years. Compare this to the 57 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.4% per year. Factoring in the forecast slowdown in growth, it looks like Shenandoah Telecommunications is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 in mind, we wouldn't be too quick to come to a conclusion on Shenandoah Telecommunications. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

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.