PLAYSTUDIOS, Inc. (NASDAQ:MYPS) Just Released Its Full-Year Results And Analysts Are Updating Their Estimates
It's been a good week for PLAYSTUDIOS, Inc. (NASDAQ:MYPS) shareholders, because the company has just released its latest yearly results, and the shares gained 9.9% to US$2.33. Revenues were in line with expectations, at US$311m, while statutory losses ballooned to US$0.15 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for PLAYSTUDIOS
Taking into account the latest results, the consensus forecast from PLAYSTUDIOS' eight analysts is for revenues of US$319.2m in 2024. This reflects a reasonable 2.7% improvement in revenue compared to the last 12 months. PLAYSTUDIOS is also expected to turn profitable, with statutory earnings of US$0.033 per share. In the lead-up to this report, the analysts had been modelling revenues of US$318.6m and earnings per share (EPS) of US$0.022 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the great increase in earnings per share expectations following these results.
The consensus price target was unchanged at US$4.92, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values PLAYSTUDIOS at US$7.00 per share, while the most bearish prices it at US$4.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. We would highlight that PLAYSTUDIOS' revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2024 being well below the historical 6.9% 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 8.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that PLAYSTUDIOS is also expected to grow slower than other industry participants.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around PLAYSTUDIOS' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that PLAYSTUDIOS' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$4.92, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for PLAYSTUDIOS going out to 2026, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.
