Shuffle Master Earnings: Here’s Why Investors are Pushing Down Shares

Shuffle Master Inc. (NASDAQ:SHFL) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.68%.

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Shuffle Master Inc. Earnings Cheat Sheet

Results: GAAP Net income increased 11.23% to $10.8 million (19 cents per diluted share) in the quarter versus a net gain of $9.71 million in the year-earlier quarter.

Revenue: Rose 11.94% to $73.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Shuffle Master Inc. reported adjusted net income of 19 cents per share. By that measure, the company missed the mean analyst estimate of $0.2. It beat the average revenue estimate of $68.48 million.

Quoting Management: “Entering the new fiscal year, we believe we are well-positioned for sustainable growth as we benefit from continued MD3 card shuffler placements, global expansion of our slot machine business, improved e-Table offerings, and meaningful opportunities created from the power of our specialty table game brands, both in brick and mortar casinos and online casinos,” said Gavin Isaacs, SHFL’s Chief Executive Officer.

Key Stats:

Revenue increased 16.11% from $63.39 million in the previous quarter. Net income increased 3.65% from $10.42 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.15 and has not changed. For the current year, the average estimate has moved down from a profit of $0.74 to a profit of $0.73 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)