Why Global Cash Access Shares Plunged
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What: Shares of Global Cash Access have plunged today by as much as 10% after the company reported first-quarter earnings.
So what: Revenue in the first quarter added up to $146.8 million, with earnings per share of $0.09. Both results were well below forecasts, as investors were expecting the company to report sales of $149.2 million and $0.19 per share in profit. CEO David Lopez said the results were right on target to meet its full-year guidance.
Now what: Lopez said that GCA's kiosk business and sales pipeline continue to improve, and that the company is working to provide even more cash access delivery systems to the market. GCA is reaffirming its 2013 outlook, with adjusted EBITDA expected in the range of $70 million to $74 million. The company noted that there's little to no growth in the domestic gaming industry and no significant casino openings expected this year.
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The article Why Global Cash Access Shares Plunged originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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