Angler Gaming plc Just Reported A Surprise Profit, And Analysts Lifted Their Estimates

Last week, you might have seen that Angler Gaming plc (NGM:ANGL) released its quarterly result to the market. The early response was not positive, with shares down 3.7% to kr4.92 in the past week. Revenues of 37% beat expectations by €9.5m and was sufficient to generate a statutory profit of €0.003 - a pleasant surprise given that the analysts were forecasting a loss! 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Angler Gaming

Taking into account the latest results, the most recent consensus for Angler Gaming from two analysts is for revenues of €37.1m in 2023. If met, it would imply a credible 3.7% increase on its revenue over the past 12 months. Angler Gaming is also expected to turn profitable, with statutory earnings of €0.03 per share. In the lead-up to this report, the analysts had been modelling revenues of €35.3m and earnings per share (EPS) of €0.02 in 2023. So it seems there's been a definite increase in optimism about Angler Gaming's future following the latest results, with a sizeable expansion in the earnings per share forecasts in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of kr6.75, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Angler Gaming's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Angler Gaming's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 7.6% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. Factoring in the forecast slowdown in growth, it seems obvious that Angler Gaming is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Angler Gaming's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than 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 in mind, we wouldn't be too quick to come to a conclusion on Angler Gaming. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Angler Gaming going out as far as 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Angler Gaming 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.