Analysts Have Been Trimming Their Century Casinos, Inc. (NASDAQ:CNTY) Price Target After Its Latest Report

As you might know, Century Casinos, Inc. (NASDAQ:CNTY) last week released its latest quarterly, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at US$130m, but statutory earnings fell catastrophically short, with a loss of US$0.67 some 26% larger than what the analysts had predicted. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 3 warning signs about Century Casinos. View them for free.

Taking into account the latest results, the most recent consensus for Century Casinos from four analysts is for revenues of US$590.5m in 2025. If met, it would imply a credible 3.5% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 68% to US$1.40. Before this latest report, the consensus had been expecting revenues of US$610.7m and US$1.05 per share in losses. So it's pretty clear the analysts have mixed opinions on Century Casinos after this update; revenues were downgraded and per-share losses expected to increase.

Check out our latest analysis for Century Casinos

The consensus price target fell 21% to US$3.75, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Century Casinos analyst has a price target of US$4.00 per share, while the most pessimistic values it at US$3.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Century Casinos' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Century Casinos is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Century Casinos analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Century Casinos you should be aware of.

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.