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One thing we could say about the analysts on Enthusiast Gaming Holdings Inc. (TSE:EGLX) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.
Following the latest downgrade, Enthusiast Gaming Holdings' three analysts currently expect revenues in 2025 to be CA$72m, approximately in line with the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 98% to CA$0.01. However, before this estimates update, the consensus had been expecting revenues of CA$83m and CA$0.0033 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
View our latest analysis for Enthusiast Gaming Holdings
The consensus price target fell 20% to CA$0.30, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Enthusiast Gaming Holdings' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 1.4% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 18% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 10% per year. It's pretty clear that Enthusiast Gaming Holdings' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Enthusiast Gaming Holdings. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Enthusiast Gaming Holdings.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Enthusiast Gaming Holdings analysts - going out to 2026, and you can see them free on our platform here.