Bragg Gaming Group Inc. (TSE:BRAG) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

The analysts might have been a bit too bullish on Bragg Gaming Group Inc. (TSE:BRAG), given that the company fell short of expectations when it released its full-year results last week. It was a pretty negative result overall, with revenues of €94m missing analyst predictions by 2.9%. Worse, the business reported a statutory loss of €0.17 per share, much larger than the analysts had forecast prior to the result. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bragg Gaming Group after the latest results.

Check out our latest analysis for Bragg Gaming Group

Following the latest results, Bragg Gaming Group's eight analysts are now forecasting revenues of €105.2m in 2024. This would be a decent 12% improvement in revenue compared to the last 12 months. Statutory losses are forecast to balloon 24% to €0.13 per share. In the lead-up to this report, the analysts had been modelling revenues of €107.1m and earnings per share (EPS) of €0.078 in 2024. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

The consensus price target held steady at CA$11.62, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company'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 Bragg Gaming Group, with the most bullish analyst valuing it at CA$13.98 and the most bearish at CA$10.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bragg Gaming Group's past performance and to peers in the same industry. We would highlight that Bragg Gaming Group's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2024 being well below the historical 35% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% annually. Factoring in the forecast slowdown in growth, it looks like Bragg Gaming Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts are expecting Bragg Gaming Group to become unprofitable next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. 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. We have estimates - from multiple Bragg Gaming Group analysts - going out to 2025, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Bragg Gaming Group that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.