Ahead of the Bell: Shuffle Master rises premarket

Shuffle Master shares rise premarket after strong fiscal 3rd-quarter earnings

• On 9:06 am EDT, Thursday September 10, 2009

NEW YORK (AP) -- Shares of Shuffle Master Inc. rose in premarket trading on Thursday, after the casino equipment maker reported strong fiscal third-quarter earnings.

Late Wednesday, the company said third-quarter profit rose 87 percent as the company cut expenses, more than offsetting a 9 percent drop in revenue.

"New management continues to post impressive results," wrote Stifel Nicolaus analyst Steven Wieczynksi in a note to investors. "(The) majority of earnings per share outperformance centered on stronger margins and lower interest expense."

He rates the company "Buy."

Shares rose 51 cents, or 6.6 percent, to $8.20 during premarket activity. The stock has ranged from $1.97 to $7.85 over the past year.