Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Bally Technologies (NYSE:BYI) were taking a spill today, falling as much as 10% after the company reported quarterly estimates last night.
So what: The gaming technology specialist posted an adjusted per-share profit of $1.10, missing estimates of $1.12, though revenue jumped 30.6%, helped by the acquisition of SHFL entertainment, to $338.4 million, beating expectations at $328.8 million. CEO Ramesh Srinivasan called the results "outstanding," and noted that operating margin expanded from 23% to 26%.
Now what: For the full year, Bally guided EPS between $4.35 and $4.50, in line with analyst estimates at $4.39, and slightly higher than its previous guidance of $4.30-$4.50. Considering that revenue beat estimates and forward guidance was healthy, today's drop is a bit puzzling. Some analysts lowered their price targets after today's report, but Bally's also got an upgrade from Citigroup, which lifted its rating to buy from neutral, and Brean Capital named it a top pick in the sector due, in part, to its growth and high-margin revenue stream. I'd tend to agree with the bulls on this one as I see little reason to sell after today' s announcement.
The biggest thing to come out of Silicon Valley in years
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.
Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.