The 10-second takeaway
For the quarter ended Oct. 31 (Q4), SHFL entertainment beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Gross margins grew, operating margins contracted, net margins contracted.
SHFL entertainment logged revenue of $73.6 million. The eight analysts polled by S&P Capital IQ expected revenue of $68.5 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $65.7 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 $0.21. The eight earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $0.19 for Q4 were 12% higher than the prior-year quarter's $0.17 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 63.6%, 110 basis points better than the prior-year quarter. Operating margin was 22.1%, 120 basis points worse than the prior-year quarter. Net margin was 14.7%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $59.1 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $273.0 million. The average EPS estimate is $0.84.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 421 members out of 498 rating the stock outperform, and 77 members rating it underperform. Among 157 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 132 give SHFL entertainment a green thumbs-up, and 25 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SHFL entertainment is outperform, with an average price target of $16.79.
Looking for alternatives to SHFL entertainment? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add SHFL entertainment to My Watchlist.