Asia Entertainment & Resources Earnings: What Investors Need to Know

Asia Entertainment & Resources (NASDAQ:AERL) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Asia Entertainment & Resources Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 33.33% to $0.2 in the quarter versus EPS of $0.30 in the year-earlier quarter.

Revenue: Rose 8.49% to $63.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Asia Entertainment & Resources reported adjusted EPS income of $0.2 per share. By that measure, the company missed the mean analyst estimate of $0.29. It missed the average revenue estimate of $65.75 million.

Quoting Management: “We continue to conservatively manage our business to reduce risk exposure that can impair longer-term growth,” said Mr. Man Pou Lam (Mr. Lam), Chairman of AERL. “We were pleased to complete the acquisition of our VIP room at Le Royal Arc Casino, which further expands our presence in the Macau VIP gaming market, as well as concluding our Rights Offering which puts us on the path to listing our stock on the Hong Kong exchange. Our ultimate goal remains unchanged – to increase our market share leading to growth in revenue and net income, and to create long-term shareholder value.”

Key Stats (on next page)…

Revenue decreased 1.32% from $64.35 million in the previous quarter. EPS decreased 31.03% from $0.29 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.35 to a profit $0.28. For the current year, the average estimate has moved down from a profit of $1.39 to a profit of $1.11 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)