WMS Industries Inc. said its fiscal second-quarter profit surged 48 percent, helped by increased shipments and improved average selling price.
The company's stock slipped $2.38, or 9.8 percent, to $22.02 in morning trading as the broader market fell on government data that said the economy shrank at its fastest pace in nearly 27 years during the fourth quarter.
The slot machine maker reported earnings grew to $23.7 million, or 41 cents per share, compared with $16 million, or 27 cents per share, in the prior year.
Analysts surveyed by Thomson Reuters forecast net income of 36 cents per share. Analysts' estimates typically exclude one-time items.
Quarterly results included a 5 cents-per-share gain related to a trademark lawsuit settlement.
Revenue increased 12 percent to $178.4 million from $159.2 million for the period ended Dec. 31.
The results surpassed Wall Street's estimate of $175.4 million.
Revenue from product sales improved to $115 million from $104.7 million, while gaming operations revenue rose to $63.4 million from $54.5 million.