AGS Earnings Prediction
The chart below shows how AGS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AGS sees a -8.77% change in stock price 10 days leading up to the earnings, and a -0.85% change 10 days following the report. On the earnings day itself, the stock moves by +3.30%. This data can give you a slight idea of what to expect for the next quarter's release.
AGS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
94.15M
15.19%
5.34%
Gross Margin
47.41%
-3.28%
-3.01%
Operating Margin
17.91%
8.09%
10.28%
Net Margin
0.07%
-97.75%
-141.18%
EPS
0.00
-100.00%
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No Data Available
AGS Earnings Analysis
PlayAGS, Inc. Corporation (AGS.N) Earnings Conference Call
Positive
- Q4 represented the 11th consecutive quarter of double-digit growth, with revenues and adjusted EBITDA increasing by 15% year-over-year.
- All three operating segments set new quarterly records for revenue and adjusted EBITDA.
- Global EGM sales increased by 36% year-over-year, reaching a record of 1,519 units, reflecting consistent growth.
- Interactive revenue grew over 30% to $3.4 million, with adjusted EBITDA increasing by nearly 160% year-over-year to a record $1.3 million.
- Table Products achieved records in sales and recurring revenue, leading to a 20% increase in adjusted EBITDA, reaching a record of $2.8 million.
- The BSX progressive and the PAX S shuffler continued to drive growth, with accelerated adoption and positive customer response.
- The AGS Arsenal site license offerings gained traction, with several successful launches lined up for the first quarter.
- Free cash flow increased by over 45% year-over-year to $11 million in Q4, marking the third consecutive quarter surpassing $10 million.
- Consistent growth in free cash flow generation indicates an improving financial position and operational efficiency.
- Anticipated growth in free cash flow by 25% or more in 2024, with positive cash flow projected in all four quarters, demonstrating financial strength and stability.
- Net leverage decreased to 3.2 times at year-end from 3.8 times at the beginning of the year, falling below the targeted range.
- The company aims to further deleverage, targeting net leverage in the range of 2.7 times to 3.0 times by the end of 2024.
- Strong financial management, operational efficiency, and commitment to deleveraging provide a solid foundation for future growth and stability.
Negative
- The net leverage decreased from 3.8 times at the start of the year to 3.2 times, but it is still above the targeted range of 3.25 times to 3.5 times, indicating room for further deleveraging.
- Fourth quarter capital expenditures totaled $15 million, bringing the full year capital spend to just under $62 million, suggesting potential strain on cash flow for investment activities.
- In 2024, the estimated full year capital expenditures are projected to be in the range of $65 million to $70 million, indicating continued high spending levels that may impact profitability and cash flow.
- Cash interest expenses in the fourth quarter amounted to approximately $14 million, with the full year cash interest expense just under $54 million, highlighting a significant financial burden that may affect overall financial flexibility.
