Gaming company Inspired (NASDAQ: INSE) will be reporting earnings this Wednesday before market open. Here’s what investors should know.
Inspired missed analysts’ revenue expectations by 10% last quarter, reporting revenues of $60.4 million, down 3% year on year. It was a slower quarter for the company, with a miss of analysts’ Leisure revenue estimates and a significant miss of analysts’ adjusted operating income 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 be flat year on year at $75.2 million, improving from the 4.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 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 missed Wall Street’s revenue estimates three times over the last two years.
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 22.2%, beating analysts’ expectations by 7.6%, and Churchill Downs reported revenues up 4.9%, topping estimates by 1.4%. Rush Street Interactive traded up 25.7% following the results while Churchill Downs was also up 4.1%.
Read our full analysis of Rush Street Interactive’s results here and Churchill Downs’s results here.
There has been positive sentiment among investors in the gaming solutions segment, with share prices up 2.5% on average over the last month. Inspired is up 4.6% during the same time and is heading into earnings with an average analyst price target of $13.33 (compared to the current share price of $8.81).
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