Everi narrows loss; Southwest posts higher earnings

Everi Holdings, a Las Vegas company providing payment processing services to the casino industry, narrowed its second-quarter loss from a year ago and said sales increased in its games segment. Meanwhile, Southwest Gas Corp. posted higher second-quarter earnings and revenue helped by a surge in natural-gas unit earnings.

Southwest Gas, a utility company serving Nevada, Arizona and California, said Tuesday that net income was $8.9 million, or 19 cents per basic share, for the three months ended June 30, up from net income of $4.9 million, or 11 cents per basic share, a year earlier.

The latest results topped Wall Street analysts’ expectations. Analysts polled by Zacks Investment Research forecast earnings of 18 cents per share.

Revenue rose 1.7 percent to $547.7 million from $538.6 million.

Income in the company’s natural gas segment was $2.4 million in the second quarter, reversing a year-earlier loss of $657,000. In a statement accompanying the earnings, Southwest Gas CEO John Hester said an operating-income increase combined with higher returns on company-owned life insurance policies buoyed the segment’s performance.

Hester said expansion into new markets helped boost revenue. He added that the company has received regulatory approvals in California, Nevada, and Arizona to reorganize as a holding company, perhaps by the fourth quarter.

TheStreet.com rates Southwest Gas shares “buy.”

Meanwhile, Everi, which also provides financial transaction equipment, said Tuesday that it lost $10.8 million, or 16 cents per share, for the three months ended June 30, compared with a net loss of $12.7 million, or 19 cents per share, a year earlier.

Everi’s most recent earnings per share matched the 16-cents-per-share forecast of analysts polled by Zacks Investment Research.

In a statement, Everi, formerly known as Global Cash Access, said the most recent results included a $4.3 million write-down of a note receivable and warrant and a $900,000 loss on the sale of aircraft acquired in 2015.

Revenue rose 3.7 percent to $214 million from $206.4 million.

In comments accompanying the earnings, Everi CEO Michael Rumbolz said the company had 10 percent year-over-year growth in games-segment units sold. The unit had revenue of $54.3 million, down 1 percent from $54.9 million a year earlier.

Rumbolz, who became CEO in February, said he expected sales of its game cabinets to grow, given the company’s entry into the Colorado; Missouri; and Alberta, Canada markets.

The Street.com rates Everi’s stock “sell,” citing deteriorating net income, generally high debt management risk and weak operating cash flow.

Everi Holdings shares rose 25 cents, or 14.16, percent, Tuesday to close at $1.98 on the New York Stock Exchange. Southwest Gas shares fell 69 cents, or 0.93 percent, to close at $73.68, also on the NYSE.

Contact Matthew Crowley at mcrowley@reviewjournal.com. Follow @copyjockey on Twitter.

News Headlines
Local Spotlight
Home Front Page Footer Listing
You May Like

You May Like