This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Casino Services Stocks to Play

5. Shuffle Master supplies entertainment-based products for the gaming industry in four distinct categories: Utility products, Proprietary Table Games (PTG), Electronic Table Systems (ETS) and Electronic Gaming Machines (EGM).

For the latest first quarter ended Jan. 2011, the company reported total revenue of $43.8 million, up 8.6% year-on-year, largely attributable to a 24% and 33.7% revenue increase from proprietary table games and electronic gaming machines, respectively. Gross margin increased 500 basis points to 66.6%, while operating margin expanded 240 basis points to 16.1%. As a result, net income surged 30.6% to $4.8 million or 9 cents per share, compared to $3.7 million or 7 cents per share in the year-ago quarter. Analysts had estimated earnings of 8 cents per share.

The company achieved strong growth in all the product categories. Lease installed base of 7,344 shufflers increased 28% year-over-year at an average monthly lease of $454. Chipper units lease stood at 190 compared to 35 in the year-ago quarter. In the PTG segment, the company recorded a lease base of 5,237 units, 15.6% year-over-year increase. The company sold 13 units at an average price of $63,154, compared to the average price of $12,500 for 2 units sold during the first quarter of 2010.

ETS lease increased 12.6% to 2,583, while sold seats declined to 173 from 178. However, average selling price rose 6% to $22,688 from $21,410. Total EGM sales stood at 323, up 48.2% from 218, while average selling price increased 19.8% to $18,997.

Going forward, analysts expect the company to report earnings of 14 cents per share in the second quarter and 55 cents for the year ending 2011.

Of the nine analysts covering the stock, 67% recommend a buy, while the remaining rate a hold. There are no sell ratings on the stock. On average, analysts estimate an upside of 17% to $12.96 in value from current levels. The stock was recently upgraded to overweight from hold at EVA Dimensions LLC.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
SHFL $23.19 0.00%
BYI $83.27 0.00%
EGT $1.83 0.00%
GPIC $10.74 0.00%
WMS $29.63 0.00%

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs