Does The Street Have Multimedia Games Holding Figured Out?

Multimedia Games Holding (Nasdaq: MGAM  ) is expected to report Q1 earnings on Jan. 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Multimedia Games Holding's revenues will increase 14.3% and EPS will wane -7.1%.

The average estimate for revenue is $39.8 million. On the bottom line, the average EPS estimate is $0.13.

Revenue details
Last quarter, Multimedia Games Holding booked revenue of $41.4 million. GAAP reported sales were 16% higher than the prior-year quarter's $35.7 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.30. GAAP EPS of $0.27 for Q4 were 125% higher than the prior-year quarter's $0.12 per share.

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

Recent performance
For the preceding quarter, gross margin was 81.0%, about the same as the prior-year quarter. Operating margin was 17.1%, 450 basis points better than the prior-year quarter. Net margin was 20.1%, 1,140 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $171.3 million. The average EPS estimate is $0.66.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 59 members out of 71 rating the stock outperform, and 12 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Multimedia Games Holding a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Multimedia Games Holding is buy, with an average price target of $19.00.

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