Inspired Entertainment jumps 11.6% on fourth quarter revenue


Inspired Entertainment (NASDAQ: INSE) shares jumped nearly 11.6% on March 11, despite the gaming technology company’s mixed fourth-quarter results.

Revenues exceeded estimates, driven by robust demand and momentum in all business segments, and a strong recovery in the Gaming and Leisure segments, following the reopening of retail outlets following the pandemic situation. However, earnings fell short of analysts’ expectations.

Inspired Entertainment offers virtual sports, mobile games and server-based gaming systems with associated terminals, digital content, regulated betting, gaming and lottery operators worldwide. Markedly, shares are up 33.1% over the past year.

Mixed performance in the fourth quarter

During the fourth quarter, adjusted revenue totaled $67 million, up 71% year-over-year. It easily exceeded the average forecast of $61.67 million, reflecting continued momentum and robust demand across all business segments. In particular, recreation revenue rose 183% to $23.5 million, acting as a tailwind.

Despite strong earnings numbers, the company posted a loss of $0.05 per share, well below analysts’ expectations for earnings of $0.05 per share. Moreover, it was much worse than the previous year’s earnings of $0.12 per share.

CEO Comments

Looking to the year ahead, inspired Chairman Lorne Weil said, “The steady momentum we’ve seen building throughout 2021 and the strong demand that continues to exist for our products in each of our business segments, including industry outlook for land applications. games emerging from COVID-19 and enduring online growth trends, further bolster our confidence in the company’s long-term prospects.

Analyst recommendation

The stock has had an analyst rating for the past three months.

Roth Capital analyst Edward Engel has a buy rating on the stock with a price target of $18 (36.5% upside potential).

TipRanks smart score

INSE scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating the stock has strong potential to outperform market expectations.

Download TipRanks mobile app now

To find great stock trading ideas at attractive valuations, visit TipRanks’ Best Stocks to Buy, a recently launched tool that brings together all of TipRanks’ stock information.

Read the full disclaimer and disclosure

Related News:
Clearside Biomedical revenue up 2,335% in the fourth quarter; Share up 35%
Genesco reports quarterly; Shares up 11.8%
United Natural Foods Reports Mixed Second Quarter Results; Shares fall 4.3%


Comments are closed.