Last week, you might have seen that WEBTOON Entertainment Inc. (NASDAQ:WBTN) released its second-quarter result to the market. The early response was not positive, with shares down 7.1% to US$8.63 in the past week. Revenues were in line with expectations, at US$338m, while statutory losses ballooned to US$0.11 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, WEBTOON Entertainment's eight analysts currently expect revenues in 2026 to be US$1.38b, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 90% to US$0.26. Before this earnings announcement, the analysts had been modelling revenues of US$1.41b and losses of US$0.21 per share in 2026. So it's pretty clear the analysts have mixed opinions on WEBTOON Entertainment after this update; revenues were downgraded and per-share losses expected to increase.

The consensus price target fell 7.1% to US$11.29, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on WEBTOON Entertainment, with the most bullish analyst valuing it at US$13.00 and the most bearish at US$10.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the WEBTOON Entertainment's past performance and to peers in the same industry. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2026. That would be a definite improvement, given that the past year have seen revenue shrink 0.5% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 16% per year. So it's pretty clear that, although revenues are improving, WEBTOON Entertainment is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of WEBTOON Entertainment's future valuation.

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 estimates - from multiple WEBTOON Entertainment analysts - going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.