The 10-second takeaway
For the quarter ended April 30 (Q2), SHFL entertainment beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share expanded significantly.
Gross margins expanded, operating margins shrank, net margins grew.
SHFL entertainment booked revenue of $77.4 million. The seven analysts polled by S&P Capital IQ expected to see a top line of $71.8 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $66.1 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 seven earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.21 for Q2 were 24% 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 64.7%, 40 basis points better than the prior-year quarter. Operating margin was 22.1%, 250 basis points worse than the prior-year quarter. Net margin was 15.3%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $78.1 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $297.4 million. The average EPS estimate is $0.79.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 419 members out of 497 rating the stock outperform, and 78 members rating it underperform. Among 161 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 138 give SHFL entertainment a green thumbs-up, and 23 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 $17.88.
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