Agilysys (NASDAQ:AGYS), a leading provider of hospitality software solutions, is scheduled to release its second-quarter earnings report after the market closes tomorrow. This article provides a preview of what investors can expect.
Last quarter, Agilysys exceeded analysts’ revenue projections by 1.1%, posting $68.28 million in revenue, a 16.5% year-over-year increase. The company delivered a strong performance, surpassing EBITDA estimates and raising full-year revenue guidance above analyst expectations.
For the upcoming quarter, analysts predict Agilysys will continue its growth trajectory, with revenue expected to reach $73.15 million, representing a 20.8% year-on-year increase. This aligns with the 21.3% growth achieved in the same quarter of the previous year. Adjusted earnings per share are projected to be $0.34.
Analyst consensus remains largely unchanged over the past month, indicating confidence in Agilysys’s performance leading into the earnings announcement. Historically, Agilysys has consistently outperformed revenue expectations, missing estimates only once in the last two years and exceeding them by an average of 1.4%.
Within the vertical software sector, Adobe, a comparable company, recently reported a 1.2% beat on revenue estimates, with an 11.1% year-on-year sales increase. However, despite the positive results, Adobe’s stock experienced a 13.7% decline following the announcement. A deeper dive into Adobe’s performance can be found here: Adobe Earnings Analysis.
The vertical software sector has seen relatively stable stock performance over the past month. In contrast, Agilysys stock has declined by 7.8% during the same period. The current average analyst price target for Agilysys is $151.50, significantly higher than its current share price of $125.76.
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In conclusion, Agilysys enters its earnings announcement with positive momentum and a history of exceeding expectations. While market reactions can be unpredictable, as evidenced by Adobe’s recent experience, the consensus view suggests continued growth for Agilysys in the second quarter.
