it’s been a good week for Bragg Gaming Group Inc. (TSE: BRAG), as the company just released its latest annual results and shares gained 2.7% to C $ 2.30. The results are not looking good, especially as statutory losses increased by 128% to â¬ 0.16 per share. Revenue of 46 million euros exceeded expectations by 5.3%, but it feels a bit like cold comfort. Analysts usually update their forecasts with each earnings report, and we can judge from their estimates whether their view of the business has changed or if there are new concerns to consider. So we’ve collected the latest post-profit statutory consensus estimates to see what might be in store for next year.
See our latest analysis for Bragg Gaming Group
Based on the latest results, the most recent consensus for Bragg Gaming Group of twin analysts is â¬ 47.5 million in 2021 revenue which, if achieved, would represent a modest increase of 2 , 3% compared to its sales during the last 12 months. Looking ahead to this report, analysts had modeled revenues of 48.4 million euros and earnings per share (EPS) of 0.012 â¬ in 2021. So there has certainly been a drop in sentiment after the latest results, noting the new forecast from BPA. .
The consensus price target of US $ 2.38 has not really changed, with Bragg Gaming Group apparently performing according to expectations.
Looking at the big picture now, one of the ways we can understand these forecasts is to see how they stack up against both past performance and industry growth estimates. It’s pretty clear that Bragg Gaming Group’s revenue growth is expected to slow significantly, revenue by the end of 2021 is expected to show growth of 2.3% on an annualized basis. This is compared to a historic growth rate of 59% over the past five years. Compare that to other companies (with analyst forecasts) in the industry, which are expected to experience revenue growth of 22% per year overall. So it’s pretty clear that while revenue growth is expected to slow, the industry at large is also expected to grow faster than Bragg Gaming Group.
The bottom line
The most important thing to remember is that analysts have lowered their earnings per share estimates, showing that there has been a marked drop in sentiment following these results. On the positive side, there has been no major change in income estimates; although forecasts imply that revenues will outperform the industry as a whole. The consensus price target was maintained at â¬ 2.38, the latest estimates not being sufficient to have an impact on their price targets.
That said, the company’s long-term earnings trajectory is much bigger than next year. At least one analyst has provided forecasts through 2023, which can be viewed for free on our platform here.
In addition, you should also educate yourself about the 2 warning signs we spotted it with Bragg Gaming Group (including 1 which makes us a little uncomfortable).
If you decide to trade Bragg Gaming Group, use the cheapest platform * which is ranked # 1 overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, currencies, bonds and funds in 135 markets, all from one integrated account. Promoted
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.