Why Global Cash Access Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Global Cash Access (NYS: GCA) jumped today by as much as 15%, after the company reported earnings, and a new CEO.
So what: Revenue in the third quarter was $149.8 million, with much of the gain attributed to the MCA asset acquisition. Earnings per share were just $0.10, well short of the consensus estimate of $0.19 per share.
Now what: The company also announced that Scott Betts is retiring as CEO, effective at the end of the year. David Lopez, who was previously serving as President of the company, was named the new CEO. Additionally, Global Cash Access increased its 2012 outlook, and now expects earnings per share of $0.81 to $0.84. That's up from a prior range of $0.76 to $0.82 per share, and ahead of analyst estimates.
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The article Why Global Cash Access Shares Jumped originally appeared on Fool.com.Evan Niu, CFA has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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.