Sports Entertainment Group Limited Beat Revenue Forecasts By 12%: Here's What Analysts Are Forecasting Next
Last week saw the newest full-year earnings release from Sports Entertainment Group Limited (ASX:SEG), an important milestone in the company's journey to build a stronger business. Revenues of AU$153m beat forecasts by 12%, although statutory earnings per share disappointed slightly, coming in 2.7% below expectations at AU$0.0068. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Sports Entertainment Group's single analyst is for revenues of AU$252.6m in 2027. This reflects a huge 65% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 647% to AU$0.049. Yet prior to the latest earnings, the analyst had been anticipated revenues of AU$140.4m and earnings per share (EPS) of AU$0.029 in 2027. There has definitely been an improvement in perception after these results, with the analyst noticeably increasing both their earnings and revenue estimates.
Check out our latest analysis for Sports Entertainment Group
It will come as no surprise to learn that the analyst has increased their price target for Sports Entertainment Group 18% to AU$0.71on the back of these upgrades.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Sports Entertainment Group's rate of growth is expected to accelerate meaningfully, with the forecast 65% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 7.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Sports Entertainment Group to grow faster than 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 Sports Entertainment Group's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Sports Entertainment Group going out as far as 2029, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Sports Entertainment Group you should know about.
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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.