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Everi (EVRI) to Report Q4 Earnings: What's in the Offing?

Zacks Equity Research

Everi Holdings Inc. EVRI is scheduled to report fourth-quarter 2019 results on Mar 2, after the bell.

The company has an impressive surprise history. It surpassed earnings estimates thrice in the trailing four quarters and matched the same in the remaining one quarter with a positive surprise of 92.5%, on average.

Shares of the company have gained 41.5% over the past year, against 6.3% decline of the industry it belongs to.

Q4 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $133.3 million, indicating year-over-year increase of 11.6%. The top line is likely to have benefited from strength across both segments, Games and FinTech.

The consensus estimate for Games revenues stands at $72 million, indicating year-over-year increase of 7.5%. Increase in the average daily win per unit on the installed base of leased gaming machines and rise in interactive revenues are expected to have benefited the segment’s top line.

The consensus mark for FinTech revenues is pegged at $62 million, indicating year-over-year increase of 17%. Higher equipment revenues and information services and other revenues, as well as higher dollar and transaction volumes from cash access services are expected to have benefited the segment’s top line.

In third-quarter 2019, revenues of $134.6 million increased 12% year over year.

The Zacks Consensus Estimate for Everi’s bottom line is pegged at 8 cents for the to-be-reported quarter, indicating improvement from loss of 4 cents incurred in the third quarter of 2019. The bottom line is likely to have benefited from high margin gaming operations.

In third-quarter 2019, earnings of 12 cents per share increased more than 100% year over year.

Zacks Rank & Other Stocks to Consider

Everi currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Business Services sector are S&P Global SPGI, NV5 Global NVEE and TransUnion TRU, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings (three to five years) growth rate for S&P Global, NV5 Global and TransUnion is estimated at 10%, 20% and 12.9%, respectively.

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