Gaming Company Everi Holdings Inc. (NYSE:EVRI) Hits 52-week Highs On Earnings Report

Everi Holdings Inc. (NYSE:EVRI)

Everi Holdings Inc. (NYSE:EVRI) supplies casinos with video and reel gaming content and technology, payment solutions, and compliance and efficiency software. Everi Holdings Inc. sells its products and services to casinos and other gaming properties in the United States, Europe, Canada, the Caribbean, Central America, and Asia. Everi, headquartered in Las Vegas, NV, was formerly known as Global Cash Access Holdings, Inc. and changed its name to Everi Holdings Inc. in August 2015.

Institutions own 69% of Everi Holdings Inc. (NYSE:EVRI). In the last year EVRI shares are up just 1.89 % (prior to today’s price action) but shares are up almost 50% YTD. EVRI shares are up over 240% from their 52-week lows and up over 12% from their previous 52-week highs. Today’s action was unusual. EVRI shares had an Average True Range (ATR) of only 0.14 but today the shares have a low of $3.51 and a high of $4.27. This is commensurate with the explosion in volumes. EVRI average daily volumes are listed at just under 316,000 but by 2 PM EST, over 2.9 million shares had traded hands.

For Q4 2016, Everi Holdings Inc. (NYSE:EVRI)posted revenues of $217.5 million which was up 6.4% YoY and beat estimates by $5.83 million. It did experience an EPS loss of -$3.29 for Q4. For 2016 EVRI reported a net loss of $249.5 million on revenues (vs. 2015 loss of $104.9 million) of $859.5 million (versus 2015 revenues of $827 million). 2016 adjusted EBITDA was 198.1 million versus 2015 adjusted EBITDA of $200.5 million.

In 2015 shareholders of Everi Holdings Inc. (NYSE:EVRI) experienced an EPS loss of -$1.59 compared to an EPS gain of $0.19 in 2014. However sales did improve. In 2014 sales were reported at $593.1 million and that figure improved to $827 million in 2015. Two firms follow Everi Holdings Inc. (NYSE:EVRI). One rates EVRI shares as a “Strong Buy” while the other rates the shares as a “Hold”. Their consensus price target is $3.75 – about where the stock now stands.

3/15/2017
Ticker Symbol EVRI
Last Price a/o 1:56 PM EST  $                      3.79
Average Volume                    315,750
Market Cap (mlns)  $                  216.04
Sales (mlns) $846.40
Shares Outstanding (mlns) 66.68
Share Float (mlns) 65.05
Shortable Yes
Optionable Yes
Inside Ownership 0.40%
Short Float 0.64%
Short Interest Ratio 1.31
Quarterly Return 36.71%
YTD Return 49.31%
Year Return 1.89%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.