Yahoo Finance Earnings Update: Betmakers Technology Group Ltd (ASX:BET) Just Reported And Analysts Are Trimming Their Forecasts
Last week saw the newest annual earnings release from Betmakers Technology Group Ltd (ASX:BET), an important milestone in the company's journey to build a stronger business. Revenues were in line with expectations, at AU$92m, while statutory losses ballooned to AU$0.10 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Betmakers Technology Group
Following the latest results, Betmakers Technology Group's three analysts are now forecasting revenues of AU$121.4m in 2023. This would be a substantial 32% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Betmakers Technology Group forecast to report a statutory profit of AU$0.0023 per share. In the lead-up to this report, the analysts had been modelling revenues of AU$133.5m and earnings per share (EPS) of AU$0.0092 in 2023. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.
The consensus price target fell 21% to AU$0.68, with the weaker earnings outlook clearly leading valuation estimates. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Betmakers Technology Group at AU$0.75 per share, while the most bearish prices it at AU$0.60. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Betmakers Technology Group's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 32% growth on an annualised basis. This is compared to a historical growth rate of 59% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.6% per year. So it's pretty clear that, while Betmakers Technology Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 estimates - from multiple Betmakers Technology Group analysts - going out to 2025, and you can see them free on our platform here.
Even so, be aware that Betmakers Technology Group is showing 1 warning sign in our investment analysis , 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.
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