Ahead of the Bell: Shuffle Master
NEW YORK (AP) — An analyst reduced Shuffle Master's price target on Tuesday after the gambling equipment maker's third-quarter results came in below analysts' expectations.
On Monday the company reported earnings of 18 cents per share on revenue of $63.4 million. Analysts polled by FactSet forecast earnings of 20 cents per share on revenue of $68.3 million.
Roth Capital Partners' Todd Eilers kept a "Neutral" rating, but lowered Shuffle Master Inc.'s price target to $14 from $15. The analyst said in a client note that the company's quarterly performance was hurt by unfavorable foreign currency exchange rates, softer-than-expected electronic table sales and weak shipments of electronic gaming machines to Australia.
Dennis Forst of KeyBanc Capital Markets remains confident in the company, saying that any decline in the stock presents a buying opportunity for investors, as Shuffle Master still has solid fundamentals, a strong balance sheet and an appealing share price. The analyst added that the company should also get busy in early October following the G2E conference and introduction of new products.
Forst maintained a "Buy" rating and $21 price target.
Shares of Shuffle Master dropped $1.05, or 6.8 percent, to $14.38 in premarket trading. Its shares are down 23 percent from a 52-week high of $18.77 in early April.