Agilysys (AGYS) Reports Q4: Everything You Need To Know Ahead Of Earnings

Kayode Omotosho /
2023/05/15 4:21 am EDT

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

Last quarter Agilysys reported revenues of $49.9 million, up 26.5% year on year, beating analyst revenue expectations by 3.73%. It was a solid quarter for the company, with a decent beat of analyst estimates and a full year guidance beating analysts' expectations.

Is Agilysys buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Agilysys's revenue to grow 11.9% year on year to $52.1 million, slowing down from the 28.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.

Agilysys Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Agilysys's peers in the vertical software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Olo delivered top-line growth of 22.2% year on year, beating analyst estimates by 2.92% and Unity reported revenues up 56.3% year on year, exceeding estimates by 4.28%. Olo traded up 8.81% on the results, Unity was up 16.4%. Read our full analysis of Olo's results here and Unity's results here.

Tech stocks have been facing declining investor sentiment in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 5.74% over the last month. Agilysys is down 9.9% during the same time, and is heading into the earnings with analyst price target of $97.5, compared to share price of $77.06.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.