Bally's Corporation (NYSE:BALY) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
Following the upgrade, the most recent consensus for Bally's from its four analysts is for revenues of US$986m in 2021 which, if met, would be a substantial 164% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$1.90 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of US$875m and earnings per share (EPS) of US$1.59 in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
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. For example, we noticed that Bally's' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 164% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 0.3% a year over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 22% annually. So it looks like Bally's is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. More bullish expectations could be a signal for investors to take a closer look at Bally's.
Analysts are definitely bullish on Bally's, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 3 other warning signs we've identified .
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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