Fractal Gaming Group AB (publ) Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

It's been a mediocre week for Fractal Gaming Group AB (publ) (STO:FRACTL) shareholders, with the stock dropping 15% to kr33.75 in the week since its latest quarterly results. Revenues were kr181m, 12% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of kr1.60 being in line with what the analysts anticipated. 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.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

After the latest results, the twin analysts covering Fractal Gaming Group are now predicting revenues of kr896.7m in 2026. If met, this would reflect a credible 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 11% to kr2.08. Before this earnings report, the analysts had been forecasting revenues of kr959.5m and earnings per share (EPS) of kr2.32 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

See our latest analysis for Fractal Gaming Group

The consensus price target fell 5.6% to kr51.00, with the weaker earnings outlook clearly leading valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Fractal Gaming Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 9.9% 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 7.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Fractal Gaming Group.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Fractal Gaming Group's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

We also provide an overview of the Fractal Gaming Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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.