Gaming company Inspired (NASDAQ:INSE) will be announcing earnings results tomorrow before market hours. Here's what to look for.
Inspired missed analysts' revenue expectations by 2.8% last quarter, reporting revenues of $63.1 million, down 2.8% year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
Is Inspired a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Inspired's revenue to decline 6.4% year on year to $74.31 million, a reversal from the 12.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Inspired has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 5.1% on average.
Looking at Inspired's peers in the gaming solutions segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 33.5%, beating analysts' expectations by 9.4%, and Accel Entertainment reported revenues up 5.7%, topping estimates by 2.7%. Rush Street Interactive traded up 7.9% following the results while Accel Entertainment was also up 10.2%.
Read our full analysis of Rush Street Interactive's results here and Accel Entertainment's results here.
Investors in the gaming solutions segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Inspired is down 11% during the same time and is heading into earnings with an average analyst price target of $15 (compared to the current share price of $7.88).
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