Updated from July 29

Multimedia Games' ( MGAM) stock took a hit on Friday after the company's missed earning estimates and offered below-consensus guidance

The casino-game maker's profits came in 2 cents a share below expectations, while the top-end of its full-year earnings outlook was 3 cents a share below Wall Street's forecast. In recent trading, the company's stock was off $6.02, or 24.5%, to $18.52.

In a research note issued Friday, CIBC World Markets analyst David Katz downgraded Multimedia Games' stock to "sector perform" from "sector outperform" and dropped his 12- to 18-month price target to $30 a share from $35 a share.

The company is facing challenges in its New York, Oklahoma and California markets, Katz noted.

"We believe that weakness in the gaming equipment group in general and Multimedia Games' recently reduced outlook will result in the shares' trading within a fairly narrow range in the low $20s over the near term," he said.

(CIBC does not have investment banking business with Multimedia Games.)

Other analysts were less charitable.

Asensio & Company reiterated its "strong sell" and "short sell" ratings on Multimedia Games' stock. The company has become highly dependent on revenue from Indian gaming in Oklahoma and is facing stiff competition, Asensio said.

"Multimedia's operating results have now deteriorated in each of the last nine quarters," Asensio noted.

Shares of Multimedia Games plunged in after-hours trading Thursday after the company missed earning estimates and offered below-consensus guidance.

In recent trading, shares of the casino-game maker were off $7.31, or 30%, to $17.23. Earlier in the day, the company's stock closed up 73 cents, or 3.1%, to $24.54.

Multimedia Games earned $9.8 million, or 32 cents a share, in its fiscal third quarter, the company reported on Thursday. That was up from the year-earlier period, when the company earned $8.9 million, or 30 cents a share.

The company's net revenues fell 2.6% to $36.92 million. In contrast, the company's total revenue, which excludes payments to bingo and gambling hall operators, rose 28.7% to $123.5 million.

But Analysts were expecting the company to earn 34 cents a share on total revenue of $142.26 million, according to Thomson First Call.

Looking forward, Multimedia Games predicted it would earn 37 cents to 42 cents a share in its current fourth quarter. The company expects to earn $1.20 to $1.25 a share in its full fiscal year, which ends in September.

Multimedia Games did not provide revenue guidance but its earnings projections were below the Street's forecast. Analysts had projected that the company would earn 43 cents a share in its fourth quarter on $142.26 million in total revenue. For the full fiscal year, the Street was estimating earnings of $1.28 a share on $167.45 million in total revenue.

The lower-than-expected guidance marks at least the second quarter in a row that Multimedia Games has sought to rein in analysts' estimates. In April, the company predicted that its full-year earnings would come in at $1.29 a share. At the time, the consensus EPS estimate was $1.33.