Shuffle Master falls as 3Q results miss estimates
NEW YORK (AP) — Shares of Shuffle Master Inc. slumped in aftermarket trading Monday after the slot machine and gambling table maker posted disappointing fiscal third-quarter results, weighed down by greater executive costs.
Shuffle Master said its net income and revenue both improved, citing increased leases of its MD3 shuffler and greater sales of premium and progressive games. However the company said its expenses increased after it hired a chief strategy officer and filled its general counsel position. Its scuttled attempt to buy online poker provider Ongame Network Ltd. also contributed to its higher costs, and company's the results fell short of Wall Street expectations.
Shares of Shuffle Master lost $1.13, or 7.3 percent, to $14.30 in aftermarket trading following the release of the earnings report. The stock rose 20 cents to $15.43 during the regular trading session.
The Las Vegas company's net income rose 14 percent in the quarter ended July 31 to $10.4 million, or 18 cents per share, from $9.1 million, or 17 cents per share. Revenue increased 9 percent, to $63.4 million from $58.3 million.
However analysts expected net income of 20 cents per share and $68.3 million in revenue on average, according to FactSet.
Shuffle Master agreed to buy Ongame Network in March for as much as $39 million as it tried to capitalize on legal online gaming. But in late June, Shuffle Master said it was pulling out of the deal because the acquisition no longer made sense in light of weakening business conditions in Europe.