Results: Gambling.com Group Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a mediocre week for Gambling.com Group Limited (NASDAQ:GAMB) shareholders, with the stock dropping 13% to US$12.43 in the week since its latest first-quarter results. Revenues were US$41m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.31, an impressive 31% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in Gambling.com Group. Read for free now.

Taking into account the latest results, the current consensus from Gambling.com Group's seven analysts is for revenues of US$172.1m in 2025. This would reflect a substantial 24% increase on its revenue over the past 12 months. Statutory per share are forecast to be US$0.98, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$172.3m and earnings per share (EPS) of US$1.04 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Gambling.com Group

The consensus price target held steady at US$18.57, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Gambling.com Group at US$20.00 per share, while the most bearish prices it at US$17.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gambling.com Group's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 33% growth on an annualised basis. That is in line with its 36% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.8% annually. So it's pretty clear that Gambling.com Group is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Gambling.com Group. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Gambling.com Group , and understanding this should be part of your investment process.

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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.