Investors in Starz Entertainment Corp. (NASDAQ:STRZ) had a good week, as its shares rose 2.2% to close at US$19.79 following the release of its first-quarter results. Revenues were in line with expectations, at US$307m, while statutory losses ballooned to US$9.83 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Following last week's earnings report, Starz Entertainment's eight analysts are forecasting 2026 revenues to be US$1.26b, approximately in line with the last 12 months. Losses are forecast to balloon 89% to US$18.57 per share. Before this earnings announcement, the analysts had been modelling revenues of US$1.27b and losses of US$3.75 per share in 2026. So it's pretty clear the analysts have mixed opinions on Starz Entertainment even after this update; although they reconfirmed their revenue numbers, it came at the cost of a regrettable increase in per-share losses.

Despite expectations of heavier losses next year,the analysts have lifted their price target 19% to US$24.63, perhaps implying these losses are not expected to be recurring over the long term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Starz Entertainment at US$42.00 per share, while the most bearish prices it at US$13.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would also point out that the forecast 0.3% annualised revenue decline to the end of 2026 is better than the historical trend, which saw revenues shrink 4.0% annually over the past three years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 8.3% annually. So while a broad number of companies are forecast to grow, unfortunately Starz Entertainment is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Starz Entertainment. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Starz Entertainment's revenue is expected to 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Starz Entertainment going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Starz Entertainment .

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.