Shares of visual content creator and marketplace Getty Images (NYSE:GETY) have been on a wild ride on Monday. Shares of Getty had surged 31.2% at market close, after which the company posted earnings and revenue misses. Having not expected that outcome, investors trading in the after-hours market sold off their shares of Getty, which are currently down 17%, indicating a dull start to Tuesday.
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Revenues of $230.5 million missed analyst estimates of $241.66. Additionally, the figure was down 2.8% year over year, but higher by 2.8% on a constant-currency basis. Segment-wise, creative revenues declined 2.1% on a reported basis but grew 3.2% in constant currency. Editorial revenues were down 3% as reported but up 3% in constant currency. Hence, it was clear that currency fluctuations were a major drag in Q3.
The company reported a net loss per share of $0.51 versus the average Street estimate of $0.09 earnings per share and the prior-year quarter’s earnings of $0.08 per share.
Nonetheless, Getty took a few key steps during the quarter that highlight its efforts to grow. Among the deals inked in Q3 were partnerships with BBC Studios, proprietary AI visual content tools developer BRIA, and Microsoft (NASDAQ:MSFT), as well as deal extensions with Amazon (NASDAQ:AMZN) and Canva.
For the full year 2022, the company expects revenue growth to be within 1.1% to 3.8% on a reported basis and 4% to 6.7% on a constant currency basis.
Is GETY stock a buy?
Wall Street is cautious about the prospects of Getty stock and is waiting for a better entry point. The consensus rating on Getty is a Hold, based on one Buy and four Holds. The average price target of $14.56 indicates a 109% surge over the next 12 months.
