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amaysim Australia Limited Just Released Its Interim Results And Analysts Are Updating Their Estimates

amaysim Australia Limited (ASX:AYS) came out with its interim results last week, and we wanted to see how the business is performing and what top analysts think of the company following this report. The result was fairly weak overall, with revenues of AU$244m being 2.1% less than what analysts had been modelling. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on amaysim Australia after the latest results.

View our latest analysis for amaysim Australia

ASX:AYS Past and Future Earnings, February 25th 2020
ASX:AYS Past and Future Earnings, February 25th 2020

Following last week's earnings report, amaysim Australia's dual analysts are forecasting 2020 revenues to be AU$483.9m, approximately in line with the last 12 months. Prior to the latest earnings, analysts were forecasting revenues of AU$507.5m in 2020, and did not provide an EPS estimate. The consensus seems a bit less optimistic overall, with the revenue forecasts following the latest results.

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We'd also point out that that analysts have made no major changes to their price target of AU$0.49.

Further, we can compare these estimates to past performance, and see how amaysim Australia forecasts compare to the wider market's forecast performance. These estimates imply that sales are expected to slow, with a forecast revenue decline of 1.2% a significant reduction from annual growth of 23% over the last five years. Compare this with our data, which suggests that other companies in the same market are, in aggregate, expected to see their revenue grow 3.0% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - analysts also expect amaysim Australia to grow slower than the wider market.

The Bottom Line

Probably the biggest thing to take away from these latest forecasts is that brokers are definitely optimistic on the business, given the forecast for profitability next year. Unfortunately, analysts also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider market. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

At least one of amaysim Australia's dual analysts has provided estimates out to 2022, which can be seen for free on our platform here.

It might also be worth considering whether amaysim Australia's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.