Playags Inc Down 15.46% To $7.00 After Earnings Miss

Playags Inc (AGS) missed earnings estimates for Q3 2023 this afternoon.

The consensus among analysts for Playags Inc was for an earnings per share (EPS) of $0.02. The firm failed to meet those projections, reporting an EPS loss of $0.00 per share, a negative surprise of $0.02. Profits fell 0% year-over-year after reporting an EPS of $0.01 in its year-ago quarter. The negative growth rate signals that the Consumer Cyclical company .

Consensus analyst estimates were at $87.3 million. The Consumer Cyclical company managed to surpass those expectations for its third quarter with revenue of $89.4 million, a positive revenue surprise of $2.1 million (2%). The firm managed 14% growth year-over-year due to Playags Inc reporting quarterly revenue of $78.3 million in its year-ago quarter. Playags Inc achieved a higher earnings growth rate than revenue, signaling that the business has improved its profit margin.

The stock is down 15.46% to $7.00 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Playags Inc a Bullish Sentiment Rank from InvestorsObserver.

Playags Inc has been a strong performer over the past few months, garnering a high Long-Term Technical Rank by InvestorsObserver of 95, putting Playags Inc in the top 25% of stocks. The firm was recently trading at a 52-week high of $8.3 on November 7, 2023 and set a 52-week low on December 22, 2022 at $4.38.

PlayAGS Inc is a designer and supplier of gaming products and services for the gaming industry. The company mainly supplies electronic gaming machines (EGM), server-based systems and back-office systems which are used by casinos, and various gaming locations. Its operating segments are EGM, Table Products, and Interactive. The EGM segment offers a selection of video slot titles developed for the global marketplace as well as EGM cabinets. Its Table Products segments include live proprietary table games and side bets, as well as ancillary table products. The Interactive segment consists of delivering games through mobile apps such as Lucky Play Casino and Vegas Fever. It earns a majority of its revenue from the Electronic Gaming Machines segment and geographically from the United States.