As you might know, Gaming Innovation Group Inc. (OB: GIG) recently reported its quarterly numbers. It was credible overall, with $ 19m and statutory earnings per share of analyst estimates, showing that Gaming Innovation Group is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they have been changing prospects, or if it is business as usual. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts expect for next year.
See our latest analysis for Gaming Innovation Group
Taking into account the latest results, Gaming Innovation Group’s three analysts currently expect revenues in 2022 to be € 89.2m, approximately in the last 12 months. Gaming Innovation Group is also expected to turn profitable, with statutory earnings of € 0.078 per share. Prior to this report, the analysts have appeared to have become more bullish on the business, judging by their new earnings per share estimates.
The average price analysts target is 8.0% to kr29.22, considering that the analysts have other concerns, and the improved earnings per share outlook.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to past performance and industry growth estimates. One thing stands out from these estimates, which is that, in the past, it is expected to display 2.6% annualized growth until the end of 2022. If achieved, this would be a much better result than the 10% annual decline over the past five years. Comparison of this strategy, which suggests that industry revenues are expected to grow 12% annually for the foreseeable future. Even though Gaming Innovation Group’s revenue growth is expected to improve, it is still expected to grow slower than the industry.
The Bottom Line
The most important thing here is that the analysts have upgraded their earnings per share estimates, considering that there have been clear increases in optimism towards Gaming Innovation Group following these results. Fortunately, the analysts also reconfirmed their revenue estimates, although our data does not suggest that Gaming Innovation Group’s revenues are expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, considering that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn’t be too quick to come to a conclusion on Gaming Innovation Group. Long-term earnings power is far more important than next profits. At Simply Wall St, we have a full range of analytics estimates for Gaming Innovation Group going out to 2024, and you can see them free on our platform here ..
That said, it is still necessary to consider the ever-present spectrum of investment risk. We’ve identified 2 warning signs with Gaming Innovation Group, and understanding them 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 analytics forecasts using our unbiased methodology and our articles are not intended to be financial advice. It does not recommend or buy 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.