Results: Fractal Gaming Group AB (publ) Exceeded Expectations And The Consensus Has Updated Its Estimates

Fractal Gaming Group AB (publ) (STO:FRACTL) just released its annual report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 5.8% to hit kr712m. Fractal Gaming Group also reported a statutory profit of kr1.60, which was an impressive 26% above what the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Fractal Gaming Group

Taking into account the latest results, the consensus forecast from Fractal Gaming Group's dual analysts is for revenues of kr885.0m in 2025. This reflects a substantial 24% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 81% to kr2.97. Before this earnings report, the analysts had been forecasting revenues of kr788.9m and earnings per share (EPS) of kr2.35 in 2025. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

It will come as no surprise to learn that the analysts have increased their price target for Fractal Gaming Group 6.5% to kr41.00on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Fractal Gaming Group's growth to accelerate, with the forecast 24% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fractal Gaming Group is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Fractal Gaming Group following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Fractal Gaming Group. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Fractal Gaming Group going out as far as 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Fractal Gaming Group that we have uncovered.

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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.