Bally Technologies Earnings: Beats Wall Street Estimates

Bally Technologies, Inc. (NYSE:BYI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.74%.

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Bally Technologies, Inc. Earnings Cheat Sheet

Results: Net income increased 36.49% to $33.126 million (80 cents per diluted share) in the quarter versus a net gain of $24.27 million in the year-earlier quarter.

Revenue: Rose 13.23% to $238.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bally Technologies, Inc. reported adjusted net income of 80 cents per share. By that measure, the company beat the mean analyst estimate of $0.76. It beat the average revenue estimate of $235.48 million.

Quoting Management:  “Our second quarter fiscal 2013 demonstrated continued momentum in all major business areas,” said Ramesh Srinivasan, the Company’s President and Chief Executive Officer. “We are excited about our scheduled product launches over the next few months, including new wide-area progressive (‘WAP’) games featuring Hot Shot Progressive® and NASCAR®, as well as the recently released Pawn Stars™ premium daily-fee game. The Elite Bonusing Suite™ is gaining further traction with additional customer purchases in the second quarter. Finally, traditional domestic replacement sales were up year-over-year for the seventh consecutive quarter, based on continued acceptance of our growing library of game content and our increasing presence in video lottery…

…I am happy with Bally’s trajectory and the steadily increasing visibility we have into our near- and long-term future growth.”  “Operating margins increased to 24 percent, reflecting our ability to leverage infrastructure and continue to realize efficiencies in our supply chain,” said Neil Davidson, the Company’s Chief Financial Officer. “Further, we continued to build revenues that are recurring in nature as we set records in both WAP and systems maintenance revenues. We are thoughtfully allocating capital to invest in our growth and to enhance shareholder value. This quarter represents the 21st quarter in a row that we have repurchased stock. During the second quarter, we purchased 530,000 shares of common stock for $24 million at $45.43 per share.”

Key Stats:

Revenue increased 1.34% from $235.15 million in the previous quarter. Net income increased 1.83% from $32.53 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 $0.83 and has not changed. For the current year, the average estimate is a profit of $3.25, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)