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Shareholders of Century Casinos, Inc. (NASDAQ:CNTY) will be pleased this week, given that the stock price is up 16% to US$3.87 following its latest third-quarter results. The results overall were pretty much dead in line with analyst forecasts; revenues were US$156m and statutory losses were US$0.26 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Century Casinos
Following the latest results, Century Casinos' three analysts are now forecasting revenues of US$640.4m in 2025. This would be a notable 10% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 77% to US$0.57. Before this earnings announcement, the analysts had been modelling revenues of US$647.1m and losses of US$0.61 per share in 2025. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.
The average price target rose 25% to US$5.00, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Century Casinos' past performance and to peers in the same industry. We would highlight that Century Casinos' revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.6% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Century Casinos.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.