As you might know, Bragg Gaming Group Inc. (TSE:BRAG) last week released its latest second-quarter, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at €25m, but statutory earnings fell catastrophically short, with a loss of €0.10 some 150% larger than what the analysts had predicted. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Bragg Gaming Group

Taking into account the latest results, the most recent consensus for Bragg Gaming Group from seven analysts is for revenues of €103.4m in 2024. If met, it would imply a meaningful 9.3% increase on its revenue over the past 12 months. Losses are supposed to decline, shrinking 15% from last year to €0.28. Before this earnings announcement, the analysts had been modelling revenues of €104.5m and losses of €0.16 per share in 2024. While this year's revenue estimates held steady, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

As a result, there was no major change to the consensus price target of CA$11.62, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Bragg Gaming Group analyst has a price target of CA$14.19 per share, while the most pessimistic values it at CA$10.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Bragg Gaming Group shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bragg Gaming Group's past performance and to peers in the same industry. We would highlight that Bragg Gaming Group's revenue growth is expected to slow, with the forecast 20% annualised growth rate until the end of 2024 being well below the historical 28% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.0% per year. Even after the forecast slowdown in growth, it seems obvious that Bragg Gaming Group is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 in mind, we wouldn't be too quick to come to a conclusion on Bragg Gaming Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Bragg Gaming Group going out to 2026, and you can see them free on our platform here..

Even so, be aware that Bragg Gaming Group is showing 1 warning sign in our investment analysis , you should know about...

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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.