SHFL entertainment Earnings: Here’s Why Investors Like These Results

SHFL entertainment, Inc. (NASDAQ:SHFL) 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 4.72%.

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SHFL entertainment, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5% to $0.21 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Rose 17.18% to $77.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SHFL entertainment, Inc. reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $0.20. It beat the average revenue estimate of $71.57 million.

Quoting Management: “Our record second quarter results reflect a continuation of the strong worldwide demand for our innovative products, particularly in Australia and Asia,” said Gavin Isaacs, SHFL’s Chief Executive Officer. “What’s more, we achieved 17% year-over-year growth against a strong comparable quarter last year that included over $2 million in sales from new openings. The MD3 card shuffler helped fuel this quarter’s growth with record placements of 520 units, its strongest performance to date. Our slot machine, shuffler, and specialty table games businesses continued to gain momentum, with each segment reporting record revenue in the quarter. Given the 22% increase in net profit that we announced today, we strongly believe that consistent execution against our strategic initiatives is the right blueprint for building long-term, sustainable value for our shareholders.”

Key Stats (on next page)…

Revenue increased 31.68% from $58.78 million in the previous quarter. EPS increased 75% from $0.12 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 $0.22 and has not changed. For the current year, the average estimate is a profit of $0.79, which is the same with that ninety days ago.

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