Last week saw the newest full-year earnings release from The Star Entertainment Group Limited (ASX:SGR), an important milestone in the company’s journey to build a stronger business. Star Entertainment Group beat revenue forecasts by a solid 11%, hitting AU$1.4b. Statutory losses also blew out, with the loss per share reaching AU$0.16, some 146% bigger than the analysts expected. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus, from the three analysts covering Star Entertainment Group, is for revenues of AU$1.18b in 2026. This implies an uneasy 13% reduction in Star Entertainment Group’s revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 23% to AU$0.13. Before this latest report, the consensus had been expecting revenues of AU$1.20b and AU$0.064 per share in losses. While this year’s revenue estimates held steady, there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
See our latest analysis for Star Entertainment Group
The consensus price target held steady at AU$0.14, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company’s valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Star Entertainment Group analyst has a price target of AU$0.20 per share, while the most pessimistic values it at AU$0.09. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 13% annualised decline to the end of 2026. That is a notable change from historical growth of 3.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.5% per year. It’s pretty clear that Star Entertainment Group’s revenues are expected to perform substantially worse than the wider industry.
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‘ Some details of this article were extracted from the following source finance.yahoo.com ’
