Agilysys Set to Report Earnings Amid Strong Software Sector Performance

Agilysys is set to report Q1 earnings on May 13, with analysts expecting $61.95 million in revenue and $0.28 in adjusted EPS. The company's strong performance is driven by its cloud-based hospitality industry software solutions, which have seen growing adoption.

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Nitish Verma
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Agilysys Set to Report Earnings Amid Strong Software Sector Performance

Agilysys Set to Report Earnings Amid Strong Software Sector Performance

Agilysys (NASDAQ:AGYS), a leading provider of hospitality industry software solutions, is scheduled to report its earnings for the quarter ending March 31, 2024, on May 13, after the market close. Analysts are expecting the company to post revenue of $61.95 million, representing a robust 17.1% year-over-year growth. They are also projecting adjusted earnings per share of $0.28 for the quarter.

Why this matters: The strong performance of Agilysys and its peers in thevertical software segment reflects the growing importance of technology in the hospitality industry, which has significant implications for the broader economy. As the industry continues to recover from the pandemic, the adoption of digital solutions will play a crucial role in shaping its future growth and development.

These expectations follow a strong performance in the previous quarter, where Agilysys reported revenue of $60.57 million, up an impressive 21.3% compared to the same period last year. The company has consistently exceeded Wall Street's revenue estimates over the past two years, surpassing them by an average of 3.1%.

Agilysys operates in the vertical software segment, which has seen several of its peers already report their first-quarter results. Olo, a provider of online ordering and delivery solutions, posted a 27.3% year-over-year revenue growth, beating analysts' expectations by 3.5%. Similarly, restaurant technology platform Toast reported a 31.3% increase in revenue, topping estimates by 3.3%.

The strong performance of these companies reflects the positive sentiment among investors in the vertical software space. Over the past month, share prices in the segment have risen by an average of 2.8%. However, Agilysys' stock is down 2% during the same period, despite analysts maintaining an average price target of $100, significantly higher than the current share price of $81.15.

Agilysys has been focusing on expanding its product offerings and enhancing its existing solutions to cater to the evolving needs of the hospitality industry. The company's cloud-based solutions have gained traction as more businesses prioritize digital transformation and contactless guest experiences in the wake of the COVID-19 pandemic.

As Agilysys prepares to report its earnings, investors will be closely watching for updates on the company's growth strategies, new customer acquisitions, and the adoption of its cloud-based solutions. With the hospitality industry showing signs of recovery and an increasing emphasis on technology-driven solutions, Agilysys is well-positioned to capitalize on these trends and deliver strong results.

Key Takeaways

  • Agilysys to report Q1 earnings on May 13, expecting 17.1% revenue growth.
  • Analysts project adjusted EPS of $0.28, driven by hospitality industry recovery.
  • Agilysys has consistently beaten Wall Street's revenue estimates over 2 years.
  • Vertical software segment shows strong performance, with peers Olo and Toast reporting 27.3% and 31.3% revenue growth.
  • Agilysys focuses on expanding product offerings and cloud-based solutions for hospitality industry.