Gaming machine manufacturer Ainsworth Game Technology Limited (ASX: AGI) has reported a result today that would appear to be above some analysts' expectations.
Here's what you need to know:
- Revenues declined by 1% to $240.6 million
- Earnings before interest and tax (EBIT) lifted 15% to $91.3 million
- Net profit after tax jumped 14% to $70.4 million
- Earnings per share (EPS) gained 16% to 22 cents per share (cps)
As the company noted, these results were positively impacted by foreign currency gains of $17.9 million after tax thanks to the weakening Australian dollar against the US dollar.
In fact, operations in the USA were a highlight of the past year with the Americas region recording a 47% increase in revenue; international revenue now accounts for 61% (or $147.6 million) of total revenue. In contrast, the domestic operations were a negative influence with revenue 35% lower than the prior period at $93 million.
Shareholders are set to receive a fully franked dividend of five cps. The stock will trade ex-dividend on 10 September with payment scheduled for 29 September. Ainsworth also paid an interim dividend of 5 cps which brings the total dividends for the financial year to 10 cps which equates to a yield of 3.5%.
Outlook
The Executive Chairman, Len Ainsworth has stated that with "new product launches such as the A600, we reaffirm our expectation of delivering strong organic sales and profit growth in FY16."
Despite this morning's 7.5% rally in the share price, the stock remains down close to 20% over the past year. In contrast, peer Aristocrat Leisure Limited (ASX: ALL) has enjoyed a share price gain of around 50% over the same period.
With Ainsworth reporting EPS of 22 cps – which was ahead of the analyst consensus forecast of 18.7 cps according to data supplied by Morningstar – the stock is currently trading on a price-to-earnings ratio of 13.7 times which is well below the market average and could arguably be a good entry point into the stock.
