Full House Resorts, Inc. (NASDAQ:FLL) Just Reported, And Analysts Assigned A US$2.67 Price Target
There's been a major selloff in Full House Resorts, Inc. (NASDAQ:FLL) shares in the week since it released its quarterly report, with the stock down 25% to US$0.62. Revenues were in line with expectations, at US$82m, while statutory losses ballooned to US$0.24 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the four analysts covering Full House Resorts are now predicting revenues of US$327.6m in 2027. If met, this would reflect an okay 5.8% improvement in revenue compared to the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching US$1.23. Before this latest report, the consensus had been expecting revenues of US$329.4m and US$1.05 per share in losses. So it's pretty clear the analysts have mixed opinions on Full House Resorts even after this update; although they reconfirmed their revenue numbers, it came at the cost of a noticeable increase in per-share losses.
See our latest analysis for Full House Resorts
The consensus price target fell 15% to US$2.67per share, with the analysts clearly concerned by ballooning losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Full House Resorts at US$4.00 per share, while the most bearish prices it at US$2.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Full House Resorts' past performance and to peers in the same industry. We would highlight that Full House Resorts' revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2027 being well below the historical 15% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Full House Resorts.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Full House Resorts. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Full House Resorts' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Full House Resorts' future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Full House Resorts. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Full House Resorts going out to 2028, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 4 warning signs for Full House Resorts you should be aware of, and 2 of them are significant.
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