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What: Shares of casino partner Global Cash Access
So what: Adjusted earnings per share of $0.23 topped estimates by $0.03, though revenue of $147 million, 9% above a year ago, came in below expectations. Further down the income statement, financials were greatly improved over the prior-year quarter, with operating income jumping 125% as the company was boosted by the Durbin Amendment, which lowered the interchange rates merchants pay for debit card transactions. Global Cash, which provides ATMs and other cash and transaction-related services for casinos, also announced an alliance with Live Gamer, a company that helps social media and video game enterprises process payments. The move should help Global Cash gain a foothold in the social-gaming industry.
Now what: This stock has been on fire since the Durbin Amendment was passed last fall, more than tripling in value since then. With a forward P/E of 8.5 and the partnership with Live Gamer possibly unlocking new revenue streams, it looks like there could be more upside potential left in the stock.Want to stay plugged in with Global Cash Access? Just add Global Cash Access Holdings to your watchlist.