Shares in Aristocrat Leisure fell more than 11 per cent after the company failed to impress investors when it said it expects an improved first half profit.
The gaming machine supplier closed 31 cents, or 11.23 per cent, lower at $2.45 in trading on the Australian Securities Exchange on Monday.
Aristocrat said on Monday that it expects to lift its first half net profit by up to one third and deliver strong earnings growth for the full year.
Aristocrat flagged a net profit of $30 million to $33 million for the six months to June 30, 2012.
It posted a net profit of $24.9 million for the prior corresponding period.
“The company reiterates that it expects continued strong NPAT (net profit after tax) growth over the 12 months to 30 September 2012, and also the calendar year to 31 December 2012, compared with the prior corresponding periods,” Aristocrat said in a statement.
The company will deliver more details, including comparative results for the nine and 12 months to September 30, when it presents its first half results on August 28.
City Index chief market analyst Peter Esho questioned whether Aristocrat’s expectation was a good result given that investors were already expecting a big turnaround this year from the company.
“Consensus is for earnings to be around $39 million for the first six months, so on face value today’s announcement might disappoint, but there could also be a timing issue and the uplift could be skewed towards the second half,” Mr Esho said.
“They are again the issues the market will be looking for in late August when judging how realistic current 2012 consensus assumptions of 47 per cent earnings growth really are.”
Mr Esho said those assumptions may have to be hosed down a little.
But, he said, that should detract from an otherwise positive turnaround story.
Aristocrat has said previously that it expects strong profit growth for 2012 despite global economic uncertainty and fluctuating currency exchange rates.
Aristocrat chief executive Jamie Odell said in March that significant new game releases in all major markets, progress in targeting profitable segments, and continued cost discipline would boost operational performance in 2012 as Aristocrat moved into the second half of a five-year turnaround strategy.
