Growth in wide-area progressive game placements and introduction of new game helped Everi Holdings reverse a loss and post higher revenue in its second quarter.
In a statement, the Las Vegas-based company said it had net income of $1.5 million, or 2 cents per share, for the three months ended June 30, reversing a loss of $19.1 million, or 29 cents per share, a year earlier.
The latest results topped Wall Street forecasts. Analysts polled by Yahoo Finance had expected the company to lose 2 cents per share.
Analysts expected Everi to lose 2 cents per share on revenue of $110.5 million. The most recent results include a $2.6 million noncash charge related to the write-off of inventory and fixed assets.
“The beat and raise in the quarter are reflective of the outperformance in both the FinTech and Games segments and continue to suggest solid momentum,” Jefferies analyst David Katz told investors in a research note. “The results support our view that the company is the most undervalued stock in our coverage universe. We expect this momentum to continue with accelerating cash generation going forward.”
Revenue rose 16.3 percent to $118.7 million from $102.1 million. The latest results topped the $110.5 million revenue forecast by Yahoo Finance-polled analysts.
Adjusted earnings before interest, taxes, depreciation and amortization, a measure of cash flow, rose 10 percent to $59.5 million from $54.1 million.
In a statement accompanying the results, Everi CEO and President Michael Rumbolz said the company’s highest-ever installed equipment base and a 9 percent increase in win per unit helped boost earnings and revenue.
The company raised its full-year forecast for adjusted EBITDA, which eliminates one-time items, to $228 million to $231 million.
Rumbolz said Everi continues to expand its client roster and gain new contracts from competitive bids and new casino openings.
“The benefit of ongoing improvement in the domestic casino market along with the addition of new customers is generating consistent increases in transaction volumes and overall dollars processed,” he said.
Last week, Everi Holdings agreed to let Intelligent Gaming Systems Ltd. resell Everi’s cash access products including its Casino Direct kiosk to United Kingdom customers. Financial terms weren’t disclosed.
In July, the company aimed to widen its brand recognition by presenting games, cabinets, and technology solutions at the Oklahoma Indian Gaming Association trade show in Oklahoma City.
Shares of Everi Holdings, which TheStreet.com rates a C- or “hold,” rose 20 cents, or 2.57 cents per share, to close at $7.99 in after-hours trading on the New York Stock Exchange Tuesday. In regular trading, the shares fell 9 cents, or 1.14 percent, to close at $7.79.
Everi’s share price is up 5.8 percent since 2018 trading started Jan. 2.
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