Galaxy Entertainment Group Limited (HKG:27) Just Released Its Second-Quarter Earnings: Here's What Analysts Think
It's been a good week for Galaxy Entertainment Group Limited (HKG:27) shareholders, because the company has just released its latest second-quarter results, and the shares gained 5.7% to HK$34.74. The result was fairly weak overall, with revenues of HK$12b being 4.7% less than what the analysts had been modelling. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following last week's earnings report, Galaxy Entertainment Group's 16 analysts are forecasting 2026 revenues to be HK$50.7b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be HK$2.41, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of HK$51.2b and earnings per share (EPS) of HK$2.45 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Galaxy Entertainment Group
The analysts reconfirmed their price target of HK$45.14, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Galaxy Entertainment Group analyst has a price target of HK$51.48 per share, while the most pessimistic values it at HK$34.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Galaxy Entertainment Group's revenue growth is expected to slow, with the forecast 1.6% annualised growth rate until the end of 2026 being well below the historical 27% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Galaxy Entertainment Group.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at HK$45.14, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Galaxy Entertainment Group going out to 2028, and you can see them free on our platform here..
Before you take the next step you should know about the 1 warning sign for Galaxy Entertainment Group that we have uncovered.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.