Bally Technologies Outruns Estimates Again
Bally Technologies (NYS: BYI) reported earnings on Feb. 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Bally Technologies beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded.
Gross margins shrank, operating margins expanded, net margins dropped.
Bally Technologies notched revenue of $210.5 million. The 12 analysts polled by S&P Capital IQ predicted a top line of $203.1 million. Sales were 15% higher than the prior-year quarter's $182.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.54. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. GAAP EPS of $0.54 for Q2 were 10% higher than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 63.0%, 100 basis points worse than the prior-year quarter. Operating margin was 20.5%, 100 basis points better than the prior-year quarter. Net margin was 11.5%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $225.5 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $860.0 million. The average EPS estimate is $2.38.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 128 members out of 173 rating the stock outperform, and 45 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Bally Technologies a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bally Technologies is outperform, with an average price target of $43.04.
Over the decades, small-cap stocks, like Bally Technologies have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Bally Technologies to My Watchlist.
At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Bally Technologies. The Fool has opened a short position in Bally Technologies. 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.