Las Vegas-based gaming manufacturer swings to a loss in 3Q
Las Vegas-based PlayAGS Inc. sold a company record number of slot machines in the third quarter, contributing to a 5 percent increase in revenue for the period ending Sept. 30.
“Our third quarter performance was underscored by the sale of nearly 1,400 EGMs (electronic gaming machines) — the most in our company’s history — as well as record performance in our table products segment,” company President and CEO David Lopez said in a release issued Thursday.
PlayAGS reported a loss of $5.5 million, 16 cents a share, on revenue of $79.4 million for the quarter. That compared with net income of $4.3 million, 12 cents a share, on revenue of $75.5 million.
The company beat analysts’ earnings and revenue projections. On average, a survey of 10 analysts expected revenue $78.4 million.
Lopez said the company’s Orion cabinet line were behind the increased sales.
“After a successful G2E last month, we are looking forward to launching our premium lease-only Orion Rise cabinet and Starwall LED merchandising display, as well as our highly anticipated Orion 49C, Pax S card shuffler, and Bonus Spin Xtreme progressive system,” he said. “We believe this robust suite of products will help drive growth in 2020 and beyond.”
The market responded positively to the results.
Shares were up 27 cents, 2.2 percent, to $12.67 a share in average volume trading on the New York Stock Exchange on Thursday. After hours, the stock rose an additional penny, 0.1 percent.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.