Shuffle Master Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Shuffle Master (NAS: SHFL) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 31 (Q1), Shuffle Master beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share expanded significantly.

Gross margins dropped, operating margins grew, and net margins improved.

Revenue details
Shuffle Master booked revenue of $56.1 million. The four analysts polled by S&P Capital IQ predicted revenue of $52.9 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $43.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.14. The six earnings estimates compiled by S&P Capital IQ anticipated $0.12 per share. GAAP EPS of $0.14 for Q1 were 56% higher than the prior-year quarter's $0.09 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 63.9%, 270 basis points worse than the prior-year quarter. Operating margin was 19.8%, 370 basis points better than the prior-year quarter. Net margin was 13.6%, 260 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $63.8 million. On the bottom line, the average EPS estimate is $0.19.

Next year's average estimate for revenue is $251.3 million. The average EPS estimate is $0.73.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 413 members rating the stock outperform and 80 members rating it underperform. Among 165 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give Shuffle Master a green thumbs-up, and 26 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shuffle Master is outperform, with an average price target of $13.45.

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At the time thisarticle 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. 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.

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