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What: Shares of casino-game maker Shuffle Master
So what: Earnings season is winding down, but there are still some companies that are pleasing and disappointing investors with quarterly numbers. Fortunately for Shuffle Master shareholders, it was the former, as the quarter ending in January showed solid growth on the top and bottom line. Revenue for the quarter was up 28% from the prior year to $56.1 million. Earnings per share, meanwhile, raced ahead 56% to $0.14. Wall Street analysts had been expecting $0.11 in EPS on $51.1 million in revenue.
Now what: The company is obviously continuing to target growth as it also told investors that it just acquired online poker company Ongame Network for roughly $26 million. The company could be on the hook for an additional $13 million if the U.S. legalizes real-money, online poker within the next five years.
Acquisition efforts aside, we can't skip over the fact that the state of the economic recovery will be a component of Shuffle Master's results in the coming quarters. That said, with trailing annual revenue of $240 million, Shuffle Master is still a somewhat smaller player in the industry, which means that it has the potential to grow through market share even if the overall industry doesn't rapidly pick back up.
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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.
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