The quarterly results for Playtika Holding Corp. (NASDAQ:PLTK) were released last week, making it a good time to revisit its performance. Statutory earnings per share fell badly short of expectations, coming in at US$0.08, some 29% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$706m. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 5 warning signs about Playtika Holding. View them for free.NasdaqGS:PLTK Earnings and Revenue Growth May 13th 2025

Taking into account the latest results, the current consensus from Playtika Holding's 13 analysts is for revenues of US$2.83b in 2025. This would reflect a decent 8.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 40% to US$0.52. In the lead-up to this report, the analysts had been modelling revenues of US$2.83b and earnings per share (EPS) of US$0.54 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Playtika Holding

The consensus price target held steady at US$7.63, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Playtika Holding at US$16.00 per share, while the most bearish prices it at US$5.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Playtika Holding's past performance and to peers in the same industry. It's clear from the latest estimates that Playtika Holding's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.0% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 9.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Playtika Holding is expected to grow at about the same rate as the wider industry.

Story Continues

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$7.63, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Playtika Holding going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 5 warning signs for Playtika Holding (1 is a bit concerning!) that you need to take into consideration.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

View Comments