Agilysys Shares Drop 12% After Earnings Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: seekingalpha
- International Sales Volatility: Agilysys reported weaker international sales due to uneven deal timing, with CEO indicating a strategic shift away from reliance on sporadic large deals towards a more balanced business model to enhance global competitiveness.
- Revenue Guidance Increase: The company raised its fiscal 2026 total revenue guidance to $318 million, reaching the upper end of the previous range, reflecting confidence in future performance despite facing short-term market fluctuations.
- Net Revenue Growth: Agilysys achieved a 15.6% year-over-year increase in total net revenue to $80.4 million, up from $69.6 million in the prior year, showcasing strong market performance and sustained customer demand.
- Margin Outlook: Management indicated that while major rollouts could impact margins, most costs are accounted for, and they expect continued margin expansion, highlighting the company's proactive strategies in cost control and efficiency improvements.
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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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