The yearly results for Galaxy Entertainment Group Limited (HKG:27) were released last week, making it a good time to revisit its performance. It was not a great result overall. While revenues of HK$36b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 12% to hit HK$1.56 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Galaxy Entertainment Group's 15 analysts is for revenues of HK$46.0b in 2024. This reflects a substantial 29% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 58% to HK$2.46. In the lead-up to this report, the analysts had been modelling revenues of HK$46.3b and earnings per share (EPS) of HK$2.49 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of HK$54.61, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Galaxy Entertainment Group, with the most bullish analyst valuing it at HK$64.00 and the most bearish at HK$46.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Galaxy Entertainment Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 29% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 25% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 13% per year. So it looks like Galaxy Entertainment Group is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at HK$54.61, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Galaxy Entertainment Group analysts - going out to 2026, and you can see them free on our platform here.
You can also see our analysis of Galaxy Entertainment Group's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.