PlayAGS (AGS) Q1 Earnings: What To Expect

Electronic gaming manufacturer and supplier PlayAGS (NYSE:AGS) will be reporting earnings tomorrow after the bell. Here's what to look for.

PlayAGS beat analysts' revenue expectations by 1.7% last quarter, reporting revenues of $94.15 million, up 15.2% year on year. It was a slower quarter for the company, with a miss of analysts' earnings estimates.

Is PlayAGS a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting PlayAGS's revenue to grow 5.2% year on year to $87.49 million, slowing from the 14.2% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PlayAGS has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 4.1% on average.

Looking at PlayAGS's peers in the gaming solutions segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 33.9%, beating analysts' expectations by 9.8%, and Churchill Downs reported revenues up 5.6%, topping estimates by 4.4%. Rush Street Interactive traded up 18% following the results while Churchill Downs was also up 4.5%.

Read our full analysis of Rush Street Interactive's results here and Churchill Downs's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the gaming solutions stocks have fared somewhat better, they have not been spared, with share prices down 2.1% on average over the last month. PlayAGS is down 11.2% during the same time and is heading into earnings with an average analyst price target of $13.5 (compared to the current share price of $8.6).

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