Angler Gaming plc (NGM:ANGL) Analysts Just Trimmed Their Revenue Forecasts By 20%

One thing we could say about the analysts on Angler Gaming plc (NGM:ANGL) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

We've discovered 2 warning signs about Angler Gaming. View them for free.

Following the latest downgrade, the current consensus, from the two analysts covering Angler Gaming, is for revenues of €36m in 2025, which would reflect a perceptible 4.2% reduction in Angler Gaming's sales over the past 12 months. Per-share earnings are expected to jump 123% to €0.07. Prior to this update, the analysts had been forecasting revenues of €45m and earnings per share (EPS) of €0.073 in 2025. It looks like analyst sentiment has fallen somewhat in this update, with a pretty serious reduction to revenue estimates and a minor downgrade to earnings per share numbers as well.

Check out our latest analysis for Angler Gaming

Despite the cuts to forecast earnings, there was no real change to the €0.65 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Angler Gaming analyst has a price target of €0.69 per share, while the most pessimistic values it at €0.61. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

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. One more thing stood out to us about these estimates, and it's the idea that Angler Gaming's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 5.5% to the end of 2025. This tops off a historical decline of 0.8% a year 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 6.6% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Angler Gaming to suffer worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Angler Gaming. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Angler Gaming after today.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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.