The Star Entertainment Group Limited (ASX:SGR) Yearly Results: Here's What Analysts Are Forecasting For This Year

Investors in The Star Entertainment Group Limited (ASX:SGR) had a good week, as its shares rose 4.1% to close at AU$1.02 following the release of its full-year results. Revenues were in line with expectations, at AU$1.9b, while statutory losses ballooned to AU$2.12 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Star Entertainment Group

Taking into account the latest results, the current consensus, from the nine analysts covering Star Entertainment Group, is for revenues of AU$1.76b in 2024. This implies a noticeable 5.8% reduction in Star Entertainment Group's revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 99% to AU$0.021. Before this latest report, the consensus had been expecting revenues of AU$1.90b and AU$0.025 per share in losses. While the revenue estimates fell, sentiment seems to have improved, with the analysts making a notable improvement in losses per share in particular.

There was no major change to the AU$1.36average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Star Entertainment Group at AU$1.80 per share, while the most bearish prices it at AU$1.20. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 5.8% annualised revenue decline to the end of 2024 is roughly in line with the historical trend, which saw revenues shrink 6.0% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.1% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Star Entertainment Group to suffer worse than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Star Entertainment Group going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Star Entertainment Group (1 is significant!) that you should be aware 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.