PlayAGS (AGS) Gears Up to Post Q1 Earnings: What to Expect
PlayAGS, Inc. AGS is scheduled to report first-quarter 2023 results on May 9, after market close. In the last reported quarter, the company delivered an earnings surprise of 166.7%.
How Are Estimates Placed?
The Zacks Consensus Estimate for first-quarter adjusted loss is pegged at 8 cents per share, indicating a contraction of 27.3% from an adjusted loss of 11 cents per share reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $77.5 million. The metric suggests an increase of 6.4% from the year-ago quarter’s figure.
PlayAGS, Inc. Price and EPS Surprise
PlayAGS, Inc. price-eps-surprise | PlayAGS, Inc. Quote
Let’s take a look at how things have shaped up prior to the announcement.
Factors at Play
PlayAGS’ first-quarter 2023 performance is likely to have benefited from high contributions from the Electronic Gaming Machine (EGM) segment. Investments in R&D along with sales and product management ensured robust diversified EGM game content and gaming cabinet portfolios, which is likely to have increased sales in the to-be-reported quarter. Also, the company is likely to witness high contributions from Table Products and Interactive segments as well.
For the to-be-reported quarter, the Zacks Consensus Estimate for EGM revenues is pegged at $72 million, suggesting an increase of 7.5% year over year. Also, the consensus estimate for revenues from Table Products and Interactive segments suggests a 19.8% and 4.5% increase year over year, respectively.
The company’s bottom line is likely to have been negatively impacted by increased inflationary pressures and high interest rates. Also, increased R&D expenses are likely to have affected the margins of the company. Also, an incremental expense incurred in the Interactive segment, in order to strengthen its RMG customer account management capabilities, might have affected the bottom line.
What Our Model Says
Our proven model predicts an earnings beat for PlayAGS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: PlayAGS has an Earnings ESP of +36.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Wynn Resorts, Limited WYNN has an Earnings ESP of +105.69% and a Zacks Rank #2.
Shares of Wynn Resorts have surged 80.6% in the past year. WYNN's earnings missed estimates in two out of the trailing four quarters, beat once and matched the same in the remaining quarter, the average surprise being 0.6%.
Choice Hotels International, Inc. CHH has an Earnings ESP of +11.89% and a Zacks Rank #3.
The stock has increased 2.8% in the past year. CHH’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 3.5%.
DraftKings Inc. DKNG has an Earnings ESP of +10.09% and a Zacks Rank #3.
The stock has increased 123.6% in the past year. DKNG’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 15.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
PlayAGS, Inc. (AGS) : Free Stock Analysis Report
DraftKings Inc. (DKNG) : Free Stock Analysis Report
