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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