Yahoo Finance Elys Game Technology, Corp. (NASDAQ:ELYS) Just Reported Earnings, And Analysts Cut Their Target Price
It's been a mediocre week for Elys Game Technology, Corp. (NASDAQ:ELYS) shareholders, with the stock dropping 13% to US$0.44 in the week since its latest quarterly results. Revenues were in line with expectations, at US$11m, while statutory losses ballooned to US$0.10 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Elys Game Technology
Taking into account the latest results, the most recent consensus for Elys Game Technology from twin analysts is for revenues of US$47.7m in 2023. If met, it would imply a solid 8.8% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 39% to US$0.28. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$48.1m and losses of US$0.27 per share in 2023. So it's pretty clear consensus is mixed on Elys Game Technology after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a modest increase to per-share loss expectations.
The consensus price target fell 43% to US$2.00per share, with the analysts clearly concerned by ballooning losses.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Elys Game Technology's growth to accelerate, with the forecast 18% annualised growth to the end of 2023 ranking favourably alongside historical growth of 6.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Elys Game Technology is expected to grow much faster than its industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Elys Game Technology. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Elys Game Technology. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.
We don't want to rain on the parade too much, but we did also find 4 warning signs for Elys Game Technology (1 doesn't sit too well with us!) that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
