Yahoo Finance SkyCity Entertainment Group Limited (NZSE:SKC) Just Released Its Interim Results And Analysts Are Updating Their Estimates
Shareholders might have noticed that SkyCity Entertainment Group Limited (NZSE:SKC) filed its half-yearly result this time last week. The early response was not positive, with shares down 4.1% to NZ$1.88 in the past week. Results were roughly in line with estimates, with revenues of NZ$446m and statutory earnings per share of NZ$0.011. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for SkyCity Entertainment Group
After the latest results, the eight analysts covering SkyCity Entertainment Group are now predicting revenues of NZ$891.3m in 2024. If met, this would reflect a credible 3.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 854% to NZ$0.097. Yet prior to the latest earnings, the analysts had been anticipated revenues of NZ$915.8m and earnings per share (EPS) of NZ$0.16 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.
The analysts made no major changes to their price target of NZ$2.57, suggesting the downgrades are not expected to have a long-term impact on SkyCity Entertainment Group's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on SkyCity Entertainment Group, with the most bullish analyst valuing it at NZ$3.50 and the most bearish at NZ$1.80 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting SkyCity Entertainment Group's growth to accelerate, with the forecast 7.5% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 6.6% per year. SkyCity Entertainment Group is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SkyCity Entertainment Group. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for SkyCity Entertainment Group going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 3 warning signs for SkyCity Entertainment Group (1 makes us a bit uncomfortable!) that you need to take into consideration.
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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.
