Multimedia Games Holding Company, Inc.
) was not much of a gamble today. If you took a look at the
company's fiscal first quarter report, then you could make a pretty
educated guess that it would be high on the
Zacks #1 Rank List
Wednesday. You may not have been able to predict the extent though.
MGAM made the list today with a gain of nearly 35%, which more than
doubled the runner up. Volume soared past 1.6 million shares,
compared to the daily average of around 112,000.
The report had everything you would want: double digit revenue
growth, better-than-expected profit and an enhanced outlook for the
full year. That last point is what really makes us at Zacks excited
since it suggests higher earnings estimates.
Let's get specific on that outlook. MGAM now expects fiscal 2012
earnings per share between 42 cents and 45 cents, compared to the
prior range of 23 cents to 26 cents. The Zacks Consensus Estimate
was at 25 cents at the time of the report, which suggests that it
could be moving higher once the analysts chime in.
By the way, that 25-cent outlook was up 31.6% over the past three
months, hence the company's Zacks #1 Rank.
As for the fiscal year ending September 2013, the Zacks Consensus
Estimate of 32 cents improved 18.5% in three months and 3.2% in
just the past seven days. At the moment, we see the possibility for
profit growth of 28% for next fiscal year over this fiscal year.
Fiscal first quarter revenue jumped 21.6% to $34.8 million,
compared to $28.6 million a year earlier. Earnings per share
reached 21 cents, including a 7-cent benefit from non-recurring
items, which surpassed last year's result and topped the Zacks
Multimedia Games has implemented several key strategic initiatives
for long-term growth, including growing its unit sales and
installed base, refreshing its installed base with Class II games
at its largest customer's facilities, increasing the number of
markets and maintaining its focus on operating discipline.
MGAM, through its wholly-owned subsidiaries, develops and
distributes gaming technology. It is the creator and supplier of
comprehensive systems, content and electronic gaming units for
Native American gaming markets, as well as for commercial casinos
and charity and international bingo markets.
MULTIMEDIA GAME (
): Free Stock Analysis Report
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