Agilysys, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
A week ago, Agilysys, Inc. (NASDAQ:AGYS) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 2.7% to hit US$93m. Agilysys also reported a statutory profit of US$0.46, which was an impressive 32% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Agilysys' eight analysts is for revenues of US$375.8m in 2027. This reflects a meaningful 9.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 11% to US$1.74. In the lead-up to this report, the analysts had been modelling revenues of US$370.8m and earnings per share (EPS) of US$1.67 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Agilysys
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.8% to US$142. 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. There are some variant perceptions on Agilysys, with the most bullish analyst valuing it at US$159 and the most bearish at US$135 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Agilysys'historical trends, as the 19% annualised revenue growth to the end of 2027 is roughly in line with the 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 16% annually. So although Agilysys is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Agilysys' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Agilysys going out to 2029, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Agilysys that you need to take into consideration.
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