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What To Expect From Agilysys’s (AGYS) Q3 Earnings

AGYS Cover Image

Hospitality industry software provider Agilysys (NASDAQ:AGYS) will be reporting earnings tomorrow afternoon. Here’s what you need to know.

Agilysys missed analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $63.51 million, up 13.3% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates.

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 15.2% year on year to $67.5 million, slowing from the 22.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.

Agilysys Total Revenue

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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.7% on average.

Looking at Agilysys’s peers in the vertical software segment, only Adobe has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 10.6%. The stock was down 8.6% on the results.

Read our full analysis of Adobe’s earnings results here.

There has been positive sentiment among investors in the vertical software segment, with share prices up 2.2% on average over the last month. Agilysys is up 3.1% during the same time and is heading into earnings with an average analyst price target of $124 (compared to the current share price of $112.32).

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