Agilysys Q3 Earnings Miss Estimates, Stock Drops
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Benzinga
- Earnings Highlights: Agilysys reported Q3 earnings of $0.42 per share, missing the $0.46 consensus estimate, which contributed to a 14.05% drop in stock price during after-hours trading.
- Revenue Growth: The quarterly revenue reached $80.39 million, exceeding the analyst estimate of $79.03 million and representing a 15.6% increase from $69.56 million in the same period last year, indicating strong market performance.
- Recurring Revenue Performance: Recurring revenue totaled $52 million, accounting for 64.7% of total net revenue, up from $44.4 million and 63.8% year-over-year, highlighting the company's growth potential in subscription services.
- Gross Margin Changes: The gross margin for the quarter was 62.5%, slightly down from 63% in the prior year, reflecting challenges in cost management, yet overall revenue growth supports the company's financial health.
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Analyst Views on AGYS
Wall Street analysts forecast AGYS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AGYS is 142.00 USD with a low forecast of 135.00 USD and a high forecast of 155.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 85.670
Low
135.00
Averages
142.00
High
155.00
Current: 85.670
Low
135.00
Averages
142.00
High
155.00
About AGYS
Agilysys, Inc. is a hospitality software company, which is engaged in delivering cloud-native software-as-a-service (SaaS) and on-premises solutions for hotels, resorts, cruise lines, casinos, corporate foodservice management, restaurants, universities, stadiums, and healthcare facilities. The Company’s software solutions include point-of-sale (POS), property management (PMS), inventory and procurement, payments, and related applications that manage and enhance the entire guest journey. It operates across North America, Europe, the Middle East, Asia-Pacific, and India. Its food and beverage ecosystem solutions include InfoGenesis, IG Kiosk, IG KDS, IG OnDemand, IG Fly, IG Quick Pay, IG Smart Menu, IG Digital Menu Board, IG PanOptic, eCash, and Analyze. Its hospitality and leisure (H&L) ecosystem solutions include LMS, Versa, and Stay. Its hospitality and leisure (H&L) experience-enhancer solutions include Book, Express Kiosk, Express Mobile, Spa, Golf, and Sales & Catering.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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