While many dozens of ASX companies have in recent weeks issued earnings downgrades, one gaming company has announced higher full year profits than previously expected.
Ainsworth Gaming Technology (ASX: AGI), which makes gaming machines, is no stranger to such announcements. The company raised guidance for the first half of the year as well, and profits before tax came in 60% higher and revenue 40% higher than the previous corresponding period.
Now the company has announced it expects profit before tax of $65 million for the full year, up from $46.2 million last year, or growth of over 40%. Ainsworth says that the lower Australian dollar, strong sales in Asia and South America, and approval of its new A560 gaming machine in Victoria are helping to lift the results.
Still, the shares are down 9% today, as of this writing. That's a rather unexpected market reaction, even more so when you consider the company's strong balance sheet, insider ownership, recent dividend announcement, past performance and ongoing growth prospects.
In the last 10 years, shares of Ainsworth Gaming Technology have risen some 800%, versus a 55% rise in the S&P/ASX 200 index (Index: ^AXJO) (ASX: XJO) and a 269% rise in competitor Aristocrat Leisure (ASX: ALL).
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Motley Fool contributor Catherine Baab-Muguira does not own shares in any company mentioned in this article.
