Agilysys (AGYS) Earnings Preview: What to Expect on October 28th
Investors are eagerly anticipating Agilysys’s (AGYS) upcoming quarterly earnings report, scheduled for release on Monday, October 28th. Analysts are predicting earnings per share (EPS) of $0.30, and the market is keen to see if the company can beat these estimates. It’s important to remember that while past performance is valuable, future projections often carry more weight in influencing stock prices.
Agilysys’s Recent Performance
During the last quarter, Agilysys exceeded EPS expectations by $0.05, but this positive news led to a 4.51% drop in the share price the following day. This highlights the importance of guidance and the market’s reaction to future expectations.
Looking at Agilysys’s historical earnings performance, the company has demonstrated a consistent track record of exceeding estimates:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q1 2025 | $0.25 | $0.30 | -5.0% |
| Q4 2024 | $0.28 | $0.32 | 15.0% |
| Q3 2024 | $0.26 | $0.35 | 0.0% |
| Q2 2024 | $0.19 | $0.25 | 25.0% |
As of October 24th, Agilysys shares were trading at $110.97. Over the past 52 weeks, the stock has experienced a significant rise of 34.45%. This positive trend suggests bullish sentiment among long-term shareholders going into this earnings release.
Analyst Opinions
Understanding the market sentiment and expectations surrounding a company is crucial for investors. Agilysys has received a total of 2 ratings from analysts, with the consensus rating being a
Buy
. The average one-year price target is $128.5, representing a potential upside of 15.8%.Peer Comparison
To gain a better understanding of Agilysys’s position within the industry, it’s helpful to compare its performance to that of its peers. Here’s a look at the analyst ratings and average one-year price targets for three prominent players: Riot Platforms, Braze, and Cleanspark.
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside/Downside |
|—|—|—|—|
| Riot Platforms | Outperform | $17.64 | 84.1% Downside |
| Braze | Buy | $57.53 | 48.16% Downside |
| Cleanspark | Outperform | $22.56 | 79.67% Downside |
Key Takeaways from Peer Analysis:
*
Revenue Growth and Gross Profit:
Agilysys ranks at the top among its peers for both revenue growth and gross profit. This indicates strong revenue generation and efficient cost management.*
Return on Equity (ROE):
Agilysys falls to the bottom of the list when it comes to ROE, suggesting potentially less efficient utilization of equity capital compared to its competitors.Agilysys: A Leader in Hospitality Software
Agilysys Inc. is a leading provider of hospitality software solutions, offering innovative cloud-native SaaS and on-premise solutions across various industries including hotels, resorts, casinos, food service management, restaurants, universities, stadiums, and healthcare. The company’s software solutions are designed to manage and enhance the entire guest journey, encompassing areas such as point-of-sale (POS), property management (PMS), inventory, procurement, payments, and related applications.
Agilysys’s Financial Strength:
*
Market Capitalization:
Agilysys’s substantial market capitalization, surpassing industry averages, reflects its significant size and strong market recognition.*
Revenue Growth:
The company has experienced a positive revenue growth rate of 13.29% as of June 30th, 2024, demonstrating strong top-line earnings. However, this growth rate falls below the average for companies in the Information Technology sector.*
Net Margin:
Agilysys boasts an exceptional net margin of 22.21%, exceeding industry averages and indicating strong profitability and efficient cost management.*
Return on Equity (ROE):
Agilysys’s ROE stands at an impressive 5.75%, exceeding industry averages and demonstrating effective utilization of equity capital.*
Return on Assets (ROA):
Agilysys’s ROA reaches 4.0%, excelling beyond industry benchmarks, signifying efficient management of assets and strong financial health.*
Debt Management:
The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, at 0.09.Conclusion:
Agilysys is poised for continued growth within the hospitality technology market. With a strong track record of exceeding earnings expectations, a positive outlook from analysts, and a strong financial profile, the company presents an intriguing opportunity for investors. However, it is crucial to keep in mind that the market’s reaction to the earnings release will be heavily influenced by the company’s future projections and guidance.
