The 10-second takeaway
For the quarter ended April 30 (Q2), Shuffle Master beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Margins increased across the board.
Shuffle Master notched revenue of $66.1 million. The four analysts polled by S&P Capital IQ looked for a top line of $65.1 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $59.9 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 $0.20. The six earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.17 for Q2 were 21% higher than the prior-year quarter's $0.14 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 64.3%, 400 basis points better than the prior-year quarter. Operating margin was 22.3%, 200 basis points better than the prior-year quarter. Net margin was 14.7%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $67.4 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $260.3 million. The average EPS estimate is $0.77.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 423 members out of 502 rating the stock outperform, and 80 members rating it underperform. Among 165 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 138 give Shuffle Master a green thumbs-up, and 27 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shuffle Master is outperform, with an average price target of $18.30.
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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 here. He is 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 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.