Last week, you might have seen that Kambi Group plc (STO:KAMBI) released its quarterly result to the market. The early response was not positive, with shares down 3.9% to kr146 in the past week. It was a pretty mixed result, with revenues beating expectations to hit €46m. Statutory earnings fell 6.7% short of analyst forecasts, reaching €0.13 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the three analysts covering Kambi Group are now predicting revenues of €184.7m in 2027. If met, this would reflect a modest 3.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 52% to €0.79. Yet prior to the latest earnings, the analysts had been anticipated revenues of €184.7m and earnings per share (EPS) of €0.79 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Kambi Group
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr202. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Kambi Group at kr224 per share, while the most bearish prices it at kr172. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Kambi Group's growth to accelerate, with the forecast 2.9% annualised growth to the end of 2027 ranking favourably alongside historical growth of 1.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.3% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Kambi Group is expected to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kambi Group's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Kambi Group going out to 2028, 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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