Multimedia Games Holding
The 10-second takeaway
For the quarter ended March 31 (Q2), Multimedia Games Holding beat expectations on revenues and earnings per share.
Compared with the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins grew, net margins expanded.
Multimedia Games Holding booked revenue of $39.5 million. The two analysts polled by S&P Capital IQ anticipated revenue of $34.0 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $30.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.24. The three earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. GAAP EPS of $0.24 for Q2 were 500% higher than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 83.9%, 360 basis points worse than the prior-year quarter. Operating margin was 16.9%, 1,170 basis points better than the prior-year quarter. Net margin was 17.2%, 1,330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $36.9 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $148.9 million. The average EPS estimate is $0.69.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 58 members out of 71 rating the stock outperform, and 13 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Multimedia Games Holding a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Multimedia Games Holding is hold, with an average price target of $11.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.