Investors in Gaia, Inc. (NASDAQ:GAIA) had a good week, as its shares rose 9.9% to close at US$5.98 following the release of its quarterly results. The results weren't stellar - revenue fell 2.4% short of analyst estimates at US$22m, although statutory losses were a relative bright spot. The per-share loss was US$0.05, 17% smaller than the analysts were expecting prior to the result. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Gaia's twin analysts is for revenues of US$107.0m in 2025. This reflects a major 23% improvement in revenue compared to the last 12 months. Gaia is also expected to turn profitable, with statutory earnings of US$0.03 per share. In the lead-up to this report, the analysts had been modelling revenues of US$109.1m and earnings per share (EPS) of US$0.02 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the great increase in earnings per share expectations following these results.
The consensus price target rose 8.0% to US$6.75, suggesting that higher earnings estimates flow through to the stock's valuation as well.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Gaia's growth to accelerate, with the forecast 18% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Gaia to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Gaia following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Gaia going out as far as 2026, and you can see them free on our platform here.
Even so, be aware that Gaia is showing 1 warning sign in our investment analysis , you should know about...
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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.
