Global Cash Access Holdings Misses on the Top and Bottom Lines

Global Cash Access Holdings (NYSE: GCA  ) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Global Cash Access Holdings missed slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share dropped. GAAP earnings per share contracted significantly.

Margins shrank across the board.

Revenue details
Global Cash Access Holdings notched revenue of $146.8 million. The five analysts polled by S&P Capital IQ predicted sales of $149.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.19. The four earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. Non-GAAP EPS of $0.19 for Q1 were 9.5% lower than the prior-year quarter's $0.21 per share. GAAP EPS of $0.09 for Q1 were 18% lower than the prior-year quarter's $0.11 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.3%, 40 basis points worse than the prior-year quarter. Operating margin was 8.8%, 160 basis points worse than the prior-year quarter. Net margin was 4.2%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $148.0 million. On the bottom line, the average EPS estimate is $0.20.

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Next year's average estimate for revenue is $584.8 million. The average EPS estimate is $0.78.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 145 members out of 169 rating the stock outperform, and 24 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Global Cash Access Holdings a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Global Cash Access Holdings is buy, with an average price target of $9.50.

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