Why Agilysys (AGYS) Shares Are Falling Today

Anthony Lee /
2023/05/17 9:00 am EDT

What Happened:

Shares of hospitality industry software provider Agilysys (NASDAQ:AGYS) fell 6.16% in the after-market session after the company reported fourth-quarter results that exceeded analysts' estimates for revenue, free cash flow, and earnings per share. However, gross margin declined and fell below expectations. In addition, revenue and adjusted EBITDA guidance for the full year were below Consensus. Overall, it was a weaker quarter for the company, and the provided guidance offers limited reasons for optimism.

What is the market telling us:

Agilysys's shares are not very volatile than the market average and over the last year have had only 16 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Agilysys is down 8.83% since the beginning of the year, and at $70.90 per share it is trading 18.8% below its 52-week high of $87.33 from March 2023. Investors who bought $1,000 worth of Agilysys's shares 5 years ago would now be looking at an investment worth $5,650.

Is now the time to buy Agilysys? Access our full analysis of the earnings results here, it's free.