Here’s what analysts think will happen next

Limited Ainsworth Gaming Technology (ASX:AGI) Investors will be delighted as the company is posting strong numbers with its latest results. Results were generally good, with revenue beating analysts’ predictions by 5.8% to reach A$220 million. Statutory earnings per share (EPS) came in at A$0.03, 7.8% higher than analysts had expected. Earnings are an important time for investors as they can track a company’s performance, view analyst forecasts for the coming year, and see if there has been a change in sentiment towards the company. So we compiled the latest post-earnings legal consensus estimates to see what might be in store for the coming year.

See our latest review of Ainsworth Game Technology



Based on the latest results, the consensus forecast of the three Ainsworth Game Technology analysts is for revenue of A$252.5 million in 2023, which would reflect a significant 15% improvement in sales compared to last 12 months. Statutory Earnings Per Share is forecast to rise 67% to A$0.058. In the run up to this report, analysts had been modeling revenue of A$247.0 million and earnings per share (EPS) of A$0.044 in 2023. So it looks like there has been a definite spike in optimism. on the future of Ainsworth Game Technology after the latest results, with forecasts for earnings per share in particular rising sharply.

Despite these updates, analysts have made no major changes to their A$1.08 price target, suggesting the higher estimates are not likely to have a long-term impact on share value. However, there is another way to think about price targets, and that is to look at the range of price targets proposed by analysts, because a wide range of estimates could suggest a different view on possible outcomes for the business. The most optimistic analyst at Ainsworth Game Technology has a price target of A$1.25 per share, while the most pessimistic values ​​it at A$0.98. Still, with a relatively close pool of estimates, it appears that analysts are quite confident in their valuations, suggesting either that Ainsworth Game Technology is an easy business to forecast or that all analysts are using similar assumptions.

See also  "Key technology to curb corruption"

Of course, another way to view these forecasts is to place them in context against the industry itself. One thing stands out from these estimates, and that is that Ainsworth Game Technology is forecast to grow faster in the future than in the past, with revenue expected to show 15% annualized growth through the end of 2023. If achieved, this would be a much better result than the 13% annual drop over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see revenue grow 9.1% per year. So it looks like Ainsworth Game Technology is expected to grow faster than its competitors, at least for a while.

The bottom line

The biggest takeaway for us is the consensus earnings per share update, which suggests a clear improvement in sentiment around Ainsworth Game Technology’s earnings potential next year. Fortunately, their revenue estimates have also improved, and their forecasts suggest that the business is expected to grow faster than the industry as a whole. There was no real change in the consensus target price, suggesting that the intrinsic value of the business has not changed significantly from the latest estimates.

With that in mind, we continue to believe that the long-term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Ainsworth Game Technology through 2025, and you can view them for free on our platform here.

See also  10 IT stocks with whale alerts in today's session: Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Autodesk (NASDAQ:ADSK), Varonis Systems (NASDAQ: VRNS), Okta (NASDAQ) :OKTA), Salesforce (NYSE:CRM), ForgeRock (NYSE:FORG), ON Semiconductor (NASDAQ:ON), Rackspace Tech (NASDAQ:RXT)

Another thing to consider is whether management and directors have been buying or selling shares recently. We provide an overview of all open market trading over the last twelve months on our platform, here.

Do you have comments about this article? Concerned about the content? Get in touch with us directly. Alternatively, email the editorial team (at)

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock, and it does not take into account your goals or financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

Join a paid user research session
You will receive a $30 Amazon Gift Card for 1 hour of your time while helping us build better investment tools for individual investors like you. sign up here

Leave a Comment