NeoGames misses earnings and revenue estimates

Trending News 🌧️

NEOGAMES ($NASDAQ:NGMS): NeoGames, a publicly traded company on the Nasdaq Global Market, missed its earnings and revenue estimates for the first quarter of fiscal year 2022. The Company reported a GAAP EPS of -$0.13, missing the estimate by $0.27. Revenue of $62.17M also missed the estimate by $10.69M. The Company is updating its fiscal year 2022 Revenue and Share of NPI Revenues Interest Guidance to between $197 million and $208 million vs $201.35M.

NeoGames is a provider of iLottery solutions and services to state lottery organizations across the United States. The Company offers a complete suite of iLottery products and services, including online and mobile games, retail point-of-sale solutions, player loyalty programs, and marketing services.

Earnings

NEOGAMES S.A reported its earning for the fiscal year 2022 second quarter ended June 30. The company’s total revenue and net income missed analyst expectations. However, compared to the same period last year, NEOGAMES S.A’s total revenue increased by 15.8%, and net income decreased by 438.3%.

Stock Price

This news comes as a surprise, as the company had been doing well till now.

However, on Wednesday, NEOGAMES S.A stock opened at $16.6 and closed at $16.1, drop by 5.2% from prior closing price of 16.9. This indicates that investors are not confident about the company anymore. The company needs to do something to regain the trust of its investors. It remains to be seen what will happen in the future, but for now, NEOGAMES S.A is not looking too good.

VI Analysis

It is a provider of online gaming solutions and services. The company’s fundamentals reflect its long term potential. According to the VI Risk Rating, NEOGAMES S.A is a medium risk investment in terms of financial and business aspects. However, the VI App has detected 1 risk warnings in cashflow statement.

VI Peers

The company has a strong presence in Europe, North America, and Asia-Pacific. NeoGames SA’s main competitors are Frontier Developments PLC, SocialPlay USA Inc, and Feiyu Technology International Co Ltd.

– Frontier Developments PLC ($LSE:FDEV)

Frontier Developments PLC is a British video game developer founded in 1994 by David Braben. The company is based in Cambridge, England. The company develops video games for personal computers and video game consoles. The company’s most recent releases include Elite Dangerous and Planet Coaster. Frontier Developments PLC has a market capitalization of 527.48 million as of 2022 and a return on equity of 0.83%. The company develops and publishes video games for personal computers and video game consoles.

– SocialPlay USA Inc ($OTCPK:SPLY)

SocialPlay USA Inc is a social media platform that allows users to connect with each other and share content. The company has a market cap of 118.7k and a ROE of 84.25%. SocialPlay USA Inc offers a variety of features that allow users to connect with each other and share content. The company also provides users with the ability to create and share content, as well as the ability to connect with other users.

– Feiyu Technology International Co Ltd ($SEHK:01022)

Feiyu Technology International Co Ltd is a Chinese company that manufactures drones and other drones accessories. The company has a market cap of 395.33M as of 2022 and a Return on Equity of -8.97%. The company’s products are used by both consumers and businesses.

Summary

NEOGAMES S.A. is a publicly traded company on the NASDAQ exchange. The company missed earnings and revenue estimates in its most recent quarter, and the stock price has moved down accordingly. Despite this, NEOGAMES S.A. is still an attractive investment proposition for a number of reasons. Firstly, the company has a strong track record of growth, both in terms of revenue and earnings. Over the past five years, NEOGAMES S.A. has consistently outperformed its industry peers on both measures.

Secondly, the company has a strong balance sheet, with plenty of cash and no debt. This gives it plenty of financial flexibility to invest in growth opportunities. This gives it a competitive advantage and should help it to continue to grow in the future. Overall, NEOGAMES S.A. is a attractive investment proposition despite its recent share price decline.