Consensus Tightens On Getty Images Amid Q2 Miss - Do Experts See A Rebound?

Analysts lowered estimate on Getty Images Holdings Inc GETY after the company reported worse-than-expected Q2 results and lowered FY23 guidance. 

Yesterday, Getty reported an EPS loss of $(0.01), which missed the analyst consensus of $0.04, and sales of $225.68 million, missing the analyst consensus estimate of $235.64 million.

The company lowered 2023 guidance due to ongoing macroeconomic and Agency sector pressures, expected impacts from the U.S. Hollywood strikes, and higher litigation costs.

Wedbush analyst Michael Pachter reiterated Outperform rating and price target of $7.7.

The analyst believes that the company’s focus on profitability will aid it in growing faster than the GDP growth rate, and an economic rebound should drive revenues and profits much higher than expected.

The analyst lowered the estimate for revenues to $1.000 billion (from $1.005 billion) in 2024 and $1.025 billion (from $1.040 billion) in 2025.

Pachter revised the EBITDA estimate to $333 million from $335 million in 2024.

Benchmark analyst Mark Zgutowicz reduced the price target to $7 from $8, reiterating the Buy rating. 

The analyst reduced the FY23 estimate for revenue and adjusted EBITDA to $921.0 million (from $959.6 million) and $296.6 million (from $313.6 million), respectively.

The analyst factored in 5% and 2% reductions in Creative and Editorial revenue, respectively, and expects macroeconomic pressures and writers’ strike to continue in FY24, leading to a 5% reduction in FY24 revenue.

The analyst also reduced FY24 adj. EBITDA estimate by 8%, factoring reduced flow through from reduced FY24 topline. 

Apart from this, Citigroup reduced its price target to $6 from $8, maintaining the Buy rating.

Price Action: GETY shares are trading down by 7.27% at $4.2191 on the last check Tuesday.