Shares of Nexxen International (NEXN) tumbled 5% in pre-market trading on Friday, as investors reacted to a significant downward revision in earnings estimates ahead of the company's upcoming quarterly report.

Nexxen International is scheduled to release its earnings report on May 19, 2025, for the period ending June 30, 2025. According to a consensus of 9 analysts, the company is expected to report earnings of 17 cents per share. While revenue is projected to increase by 4.1% to $92.179 million from $88.58 million a year ago, the focus seems to be on the earnings outlook.

The sharp decline in the stock price appears to be driven by concerns over the company's earnings potential. Notably, the mean earnings estimate of analysts has fallen by approximately 51.8% over the last three months, signaling potential challenges in the company's near-term profitability. Despite this setback, it's worth noting that Wall Street maintains a generally positive outlook on Nexxen International, with a median 12-month price target of $15.00, which is above its last closing price of $11.60.