The 10-second takeaway
For the quarter ended Jan. 31 (Q1), SHFL entertainment missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share contracted. GAAP earnings per share shrank.
Gross margins grew, operating margins contracted, net margins dropped.
SHFL entertainment logged revenue of $58.8 million. The seven analysts polled by S&P Capital IQ predicted a top line of $60.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.13. The six earnings estimates compiled by S&P Capital IQ averaged $0.12 per share. Non-GAAP EPS of $0.13 for Q1 were 7.1% lower than the prior-year quarter's $0.14 per share. GAAP EPS of $0.12 for Q1 were 14% lower 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 64.4%, 50 basis points better than the prior-year quarter. Operating margin was 16.3%, 350 basis points worse than the prior-year quarter. Net margin was 12.0%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $72.4 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $294.1 million. The average EPS estimate is $0.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 420 members out of 497 rating the stock outperform, and 77 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 128 give SHFL entertainment a green thumbs-up, and 24 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 $17.32.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.