An influential Wall Street blog has decided to shine some light on the nation’s biggest audio content creation and distribution company, as it believes iHeartMedia “is possibly approaching a major achievement in its business.”
Despite widespread reports concerning another reduction-in-force initiative across multiple cities where iHeartMedia owns radio stations, Simply Wall St. decided to gauge market sentiment as a path to profitability is on the minds of iHeartMedia shareholders.
First, Simply Wall St. took a glance at what analysts covering iHeartMedia believe will transpire for the owner of more than 800 radio stations in 2025. It’s conclusion is that “iHeartMedia is bordering on breakeven,” citing five analysts who anticipate the company to incur “a final loss” in 2025 before generating positive profits of $79 million in 2026.
“Therefore, the company is expected to breakeven roughly two years from today,” Simply Wall St. concludes.
What rate will the company have to grow year-on-year in order to breakeven on this date? “Using a line of best fit, we calculated an average annual growth rate of 95%, which signals high confidence from analysts,” Simply Wall St. notes.
But, if this rate turns out to be too aggressive, “the company may become profitable much later than analysts predict,” it adds.
As of 3:17pm Eastern on December 26, Nasdaq-traded “IHRT” was at $2.0150.