US$5.00 - That's What Analysts Think Century Casinos, Inc. (NASDAQ:CNTY) Is Worth After These Results

Shareholders of Century Casinos, Inc. (NASDAQ:CNTY) will be pleased this week, given that the stock price is up 16% to US$3.87 following its latest third-quarter results. The results overall were pretty much dead in line with analyst forecasts; revenues were US$156m and statutory losses were US$0.26 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Century Casinos

After the latest results, the three analysts covering Century Casinos are now predicting revenues of US$640.4m in 2025. If met, this would reflect a decent 10% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 77% to US$0.57. Before this earnings announcement, the analysts had been modelling revenues of US$647.1m and losses of US$0.61 per share in 2025. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.

The average price target rose 25% to US$5.00, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Century Casinos' revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.6% 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 Century Casinos.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 Century Casinos. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Century Casinos analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Century Casinos that you need to take into consideration.

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.