Hospitality industry software provider Agilysys (NASDAQ:AGYS) will be reporting earnings tomorrow after market close. Here’s what investors should know.
Agilysys met analysts’ revenue expectations last quarter, reporting revenues of $60.57 million, up 21.3% year on year. It was a mixed quarter for the company, with a significant improvement in its gross margin but full-year revenue guidance missing analysts’ expectations.
Is Agilysys a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Agilysys’s revenue to grow 17.1% year on year to $61.95 million, improving from the 13.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Agilysys has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.1% on average.
Looking at Agilysys’s peers in the vertical software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Olo delivered year-on-year revenue growth of 27.3%, beating analysts’ expectations by 3.5%, and Toast reported revenues up 31.3%, topping estimates by 3.3%. Olo’s stock price was unchanged after the resultswhile Toast was up 13%.
Read our full analysis of Olo’s results here and Toast’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 2.8% on average over the last month. Agilysys is down 2% during the same time and is heading into earnings with an average analyst price target of $100 (compared to the current share price of $81.15).
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