Shareholders of Fractal Gaming Group AB (publ) (STO:FRACTL) will be pleased this week, given that the stock price is up 14% to kr15.32 following its latest quarterly results. Results overall were respectable, with statutory earnings of kr1.10 per share roughly in line with what the analysts had forecast. Revenues of kr105m came in 2.5% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fractal Gaming Group after the latest results.
Following the latest results, Fractal Gaming Group's two analysts are now forecasting revenues of kr632.5m in 2027. This would be a sizeable 23% improvement in revenue compared to the last 12 months. Fractal Gaming Group is also expected to turn profitable, with statutory earnings of kr1.28 per share. Before this earnings report, the analysts had been forecasting revenues of kr619.0m and earnings per share (EPS) of kr0.52 in 2027. So it seems there's been a definite increase in optimism about Fractal Gaming Group's future following the latest results, with a very substantial lift in the earnings per share forecasts in particular.
See our latest analysis for Fractal Gaming Group
With these upgrades, we're not surprised to see that the analysts have lifted their price target 29% to kr18.00per share.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Fractal Gaming Group's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 8.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Fractal Gaming Group is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Fractal Gaming Group's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Fractal Gaming Group (1 is significant!) that you need to be mindful of.
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