The S&P/ASX 200 Index (ASX: XJO) growth share Aristocrat Leisure Limited (ASX: ALL) has achieved enormous success in the past decade. One expert believes the company can continue its winning streak.
This business is best known for designing, manufacturing, and selling poker machines used in casinos, pubs, and other venues in Australia, the US, and various other countries. Aristocrat Leisure also has a growing digital gaming presence.
Past performance is not a reliable indicator of future performance, but over the last 10 years, the Aristocrat Leisure share price has risen around 750%, as shown in the chart below.
Christopher Watt from Bell Potter Securities thinks the ASX 200 growth share is still a buy.
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Market-beating performance
Writing on The Bull, Watt noted the company's recent FY24 first-half result delivered "strong earnings that exceeded consensus estimates".
That result showed revenue rose by 6.1% to $3.27 billion and reported net profit after tax (NPAT) grew by 8.9% to $711.3 million.
Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 17.6% to $1.2 billion, and normalised earnings per share (EPS) increased by 19.5% to $1.12. The profit growth enabled the board of directors to increase the interim dividend per share by 20% to 36 cents.
The ASX 200 growth share explained revenue increased due to strong performance in its North American gaming operations, reflecting the expansion of its installed base and "leading game portfolio performance". Aristocrat Leisure also attributed the revenue growth to "strong" sales in most of its 'rest of the world' markets and encouraging growth for its digital operations.
Bell Potter's Watt attributed the strong profit performance to corporate costs being lower than expected.
Watt called Aristocrat Leisure a buy. He said:
The stock remains one of the highest quality growth names on the ASX.
Outlook for the ASX 200 growth share
The poker machine business expects to deliver underlying net profit (NPATA) growth in the full-year result. Three factors contribute to that expectation.
First, it's expecting to achieve "continued strong market share, revenue and profit growth" from its electronic gaming machines division.
Second, it's working with "disciplined execution" within the Pixel United segment "with a focus on market share and investment efficiency to maintain momentum".
Finally, it's working on accelerating the performance of the Aristocrat Interactive division, with "further scaling of content to support broader market access in North America and Europe."
Aristocrat Leisure share price snapshot
Since the start of 2024, it has risen around 8%, compared to less than 1% for the ASX 200.
