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What: Shares of casino game designer WMS Industries
So what: In a lot of ways, WMS' second quarter didn't look good at all. Both revenue and profit per share fell short of analysts' expectations. As compared to the same quarter of fiscal 2011, it wasn't any prettier. Total revenue fell 19% on a year-over-year basis, while operating profit dropped 43%.
Now what: So why, you might ask, is the stock shooting up today? Because while results from the past quarter may be disappointing, investors are much more concerned about what the future holds. And if you believe WMS' management team, the future looks decidedly brighter.
In the earnings press release, CEO Brian Gamache confidently stated that "the inflection point in our operating and financial performance is now behind us." Continuing the upbeat view, in its outlook for the rest of fiscal 2012, management said it expects the back half of fiscal 2012 will show year-over-year growth in terms of both revenue and profit margin.
Despite the lackluster numbers, that certainly sounds like a reason for some investor optimism.
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Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.