Shuffle Master (SHFL): Ramping On Earnings Beat

Earnings: Q2 profits of $0.15 vs. estimates of $0.10 and $0.08 for Q2 last year.

Revenue: Up 12% to $50.8 million vs. estimates of $47.7 million.

Interim Chief Executive Phillip Peckman noted that SHFL’s quarterly results, “benefited from momentum in the card-shuffler replacement cycle, continuation of the company’s ‘progressive upgrade strategy’ and exceptional performance in the electronic gaming table segment.

Comment: Shares of automatic card-shuffler producer Shuffle Master (NASDAQ:SHFL) are ramping after hours, last trading up greater than 6%.  However, immediately following the report, shares had been up as much as 25%, so the immediate post-release enthusiasm has clearly been tempered.

This was quite a report, beating by 50% on EPS, but given the general market climate, you can probably wait to buy on a dip rather than buying after this run-up.  Perhaps of more interest is whether this report presages good numbers out of the casino sector, which would be a much bigger deal than a beat out of a $500 million company.  This is definitely a story to keep your eye on.

Disclosure: No holdings in SHFL.

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