Northland Securities Forecasts Lower Earnings for Agilysys

Key Points

• Northland Securities cut Agilysys’ Q3 2027 EPS forecast to $0.37 from $0.46, though it raised its full-year 2027 and 2028 estimates to $1.80 and $2.21, respectively.
• Agilysys exceeded quarterly expectations, reporting $0.67 EPS versus $0.55 expected and $93.36 million in revenue versus $90.92 million expected; revenue increased 17.7% year over year.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and $141.25 average price target, but the stock’s valuation is elevated at a P/E ratio above 75 and insiders have recently sold shares.

Agilysys, Inc. (NASDAQ:AGYS - Free Report) - Equities research analysts at Northland Securities reduced their Q3 2027 earnings per share (EPS) estimates for shares of Agilysys in a research report issued on Tuesday, October 27th. Northland Securities analyst N. Chokshi now forecasts that the software maker will post earnings of $0.37 per share for the quarter, down from their previous forecast of $0.46. The consensus estimate for Agilysys' current full-year earnings is $1.75 per share. Northland Securities also issued estimates for Agilysys' Q4 2027 earnings at $0.61 EPS, FY2027 earnings at $1.80 EPS, Q1 2028 earnings at $0.43 EPS, Q2 2028 earnings at $0.59 EPS, Q3 2028 earnings at $0.47 EPS, Q4 2028 earnings at $0.72 EPS and FY2028 earnings at $2.21 EPS.

Agilysys (NASDAQ:AGYS - Get Free Report) last released its quarterly earnings data on Monday, October 26th. The software maker reported $0.67 EPS for the quarter, topping the consensus estimate of $0.55 by $0.12. The business had revenue of $93.36 million for the quarter, compared to analyst estimates of $90.92 million. Agilysys had a return on equity of 12.98% and a net margin of 12.88%. The business's quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.41 EPS.

A number of other research analysts also recently weighed in on AGYS. Needham & Company LLC upped their price objective on shares of Agilysys from $135.00 to $145.00 and gave the stock a "buy" rating in a research report on Tuesday. Weiss Ratings restated a "hold (c)" rating on shares of Agilysys in a research report on Friday, October 9th. Oppenheimer restated an "outperform" rating and issued a $135.00 price target (up from $118.00) on shares of Agilysys in a research note on Tuesday. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Agilysys in a report on Tuesday, July 28th. Finally, Piper Sandler increased their price target on Agilysys from $120.00 to $140.00 and gave the stock an "overweight" rating in a research report on Tuesday. Five analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $141.25.

Agilysys Price Performance

AGYS opened at $115.86 on Friday. The firm has a fifty day moving average price of $108.45 and a 200 day moving average price of $92.28. Agilysys has a 1 year low of $61.50 and a 1 year high of $134.46. The stock has a market cap of $3.27 billion, a P/E ratio of 75.74, a P/E/G ratio of 3.29 and a beta of 0.37.

Institutional Investors Weigh In On Agilysys

Institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. purchased a new position in Agilysys in the second quarter valued at $431,704,000. William Blair Investment Management LLC acquired a new stake in shares of Agilysys during the 2nd quarter worth about $45,312,000. Deutsche Bank AG purchased a new stake in Agilysys during the second quarter worth approximately $21,593,000. Bamco Inc. NY purchased a new stake in Agilysys during the second quarter worth approximately $20,597,000. Finally, Bank of New York Mellon Corp purchased a new stake in Agilysys during the second quarter worth approximately $20,302,000. Hedge funds and other institutional investors own 88.00% of the company's stock.

Insider Buying and Selling

In other Agilysys news, insider Joe Youssef sold 1,002 shares of the business's stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $114.64, for a total value of $114,869.28. Following the transaction, the insider directly owned 19,045 shares in the company, valued at $2,183,318.80. The trade was a 5.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO William Wood, III sold 6,000 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $114.72, for a total value of $688,320.00. Following the completion of the transaction, the chief financial officer owned 35,052 shares in the company, valued at $4,021,165.44. This represents a 14.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 212,812 shares of company stock worth $23,046,675. 8.70% of the stock is currently owned by corporate insiders.

Trending Headlines about Agilysys

Here are the key news stories impacting Agilysys this week:

• Positive Sentiment: Northland Securities raised its longer-term earnings outlook. The firm increased its FY2027 EPS estimate from $1.73 to $1.80 and FY2028 EPS estimate from $2.18 to $2.21. It also lifted estimates for Q4 2027, Q1 2028, Q2 2028 and Q4 2028, signaling improving expectations for Agilysys’ growth and profitability.
• Positive Sentiment: Zacks upgraded Agilysys to a Rank #2, or “Buy.” The upgrade reflects improving expectations for the company’s earnings and could attract additional near-term investor interest. Zacks rating upgrade article
• Positive Sentiment: Several analysts remain bullish. Oppenheimer assigned an Outperform rating, while Piper Sandler and Needham projected strong price appreciation, reinforcing the positive sentiment around Agilysys’ long-term growth prospects. Oppenheimer rating article
• Neutral Sentiment: Northland’s revisions were mixed by quarter. The firm lowered its Q3 2027 EPS forecast from $0.46 to $0.37 and Q3 2028 estimate from $0.57 to $0.47, partially offsetting the increases elsewhere. Its current-year consensus reference remains $1.75 per share.
• Negative Sentiment: Recent results put margins in focus. Although Agilysys exceeded quarterly revenue and EPS expectations, reports indicated that investors were concerned about profitability, contributing to a pullback in the stock. The shares also trade at a relatively elevated valuation, with a P/E ratio above 75, leaving limited room for execution disappointments. Agilysys margins article

About Agilysys

Agilysys, Inc develops and provides hospitality technology for hotels, resorts, casinos, cruise lines and other guest-focused businesses. Its software and services are designed to help operators manage core property functions, improve guest experiences and streamline food, beverage and retail operations.

The company's product portfolio includes property-management systems, point-of-sale solutions, inventory and procurement tools, payment services, guest-facing applications, mobile ordering and resort-management software.

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