Analysts Have Made A Financial Statement On SkyCity Entertainment Group Limited's (NZSE:SKC) Full-Year Report
Last week, you might have seen that SkyCity Entertainment Group Limited (NZSE:SKC) released its yearly result to the market. The early response was not positive, with shares down 3.2% to NZ$0.60 in the past week. The results were positive, with revenue coming in at NZ$879m, beating analyst expectations by 6.9%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SkyCity Entertainment Group after the latest results.
Taking into account the latest results, the current consensus, from the six analysts covering SkyCity Entertainment Group, is for revenues of NZ$832.4m in 2027. This implies a discernible 5.3% reduction in SkyCity Entertainment Group's revenue over the past 12 months. Statutory earnings per share are expected to nosedive 88% to NZ$0.002 in the same period. Before this earnings report, the analysts had been forecasting revenues of NZ$854.3m and earnings per share (EPS) of NZ$0.02 in 2027. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.
Check out our latest analysis for SkyCity Entertainment Group
Despite the cuts to forecast earnings, there was no real change to the NZ$1.01 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on SkyCity Entertainment Group, with the most bullish analyst valuing it at NZ$1.50 and the most bearish at NZ$0.80 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 5.3% annualised decline to the end of 2027. That is a notable change from historical growth of 6.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.2% annually for the foreseeable future. It's pretty clear that SkyCity Entertainment Group's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at NZ$1.01, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple SkyCity Entertainment Group analysts - going out to 2029, and you can see them free on our platform here.
Before you take the next step you should know about the 4 warning signs for SkyCity Entertainment Group (1 is potentially serious!) 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.