Agilysys earnings: what to look for from AGYS

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Hospitality software provider Agilysys (NASDAQ: AGYS) will be announcing earnings results this Monday after market hours. Here’s what to look for.

Agilysys beat analysts’ revenue expectations last quarter, reporting revenues of $87.68 million, up 14.3% year on year. It was a satisfactory quarter for the company, with full-year revenue guidance slightly topping analysts’ expectations.

Is Agilysys a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Agilysys’s revenue to grow 14.7% year on year, slowing from the 16.1% increase it recorded in the same quarter last year.

Agilysys Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Agilysys rarely misses Wall Street’s revenue estimates.

Looking at Agilysys’s peers in the vertical software segment, only Adobe has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 12.9%. The stock traded up 1.4% on the results.

Read our full analysis of Adobe’s earnings results here.

There has been positive sentiment among investors in the vertical software segment, with share prices up 12.6% on average over the last month. Agilysys is up 21% during the same time and is heading into earnings with an average analyst price target of $134.50 (compared to the current share price of $120.57).

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