Bally beats forecasts with $33.2M in 4Q profit
Slot giant Bally Technologies beat consensus estimates to post $33.2 million in net income in the fourth quarter, despite a 17 percent decline in revenues to $205.1 million.
The company earned 58 cents per share for the three months ended June 30, compared with 54 cents in the same period last year. Analysts polled by Reuters had expected 55 cents in earnings.
“Despite the continued challenging economy which has negatively impacted our customers’ capital spending, our diversified business model drove yet another very profitable quarter,” Chief Executive Officer Richard Haddrill said in a statement.
Haddrill attributed the performance in part to improved gross margins on machine sales and lower expenses.
The company said new slot machines and an expected improvement in spending by casinos starting next year would offset the current sluggish North American replacement market caused by the weak economy.
For the fiscal year Bally earned $126.3 million, or $2.22 a share, on revenues that were down slightly (1.8 percent) year over year to $883.4 million. In fiscal 2008 the company had net income of $107.2 million, or $1.85 per share.