Cantor Fitzgerald says Amaya Gaming’s Q4 “crushed” expectations

Yesterday, after market, Amaya Gaming (Amaya Gaming Stock Quote, Chart, News: TSXV:AYA) reported its Q4 and fiscal 2012 results. In the fourth quarter, the company lost $711,309, or a penny a share, on revenues of $37.19-million. For the full year, it lost $7.11-million, or eleven cents a share, on a topline of $76.43-million.

CEO David Baazov said by the second half of the year, the integration of its recent acquisitions was rounding into form.

“The past year has been transformational for Amaya,” he said. “We expanded dramatically in Europe by increasing the licensee base of our subsidiaries Chartwell and CryptoLogic, which we had acquired in 2011 and April, 2012, respectively. Cryptologic went from a net loss in the first half of 2012 to a significant contributor of income for Amaya by the end of 2012. ”

Cantor Fitzgerald analyst Tom Liston said Amaya’s Q4 “crushed” expectations. He says the company’s EBITDA margin of $16.7-million was significantly ahead of his street high forecast of $13.4-million, and the consensus of $12-million. The company’s Q4 revenue, which was up 292% year-over-year, was also ahead of his forecast of $36.3-million, also a street high. Liston says he is encouraged by the robust contribution from the recent Cadillac Jack and Ongame acquisitions. In a research update to clients this morning, Liston maintained his BUY rating on Amaya Gaming, but raised his one-year target price by a dollar, to $9.

Liston has upped both his revenue and earnings expectations for Amaya’s fiscal 2013. He now believes the company will earn $.36 a share, or $63.2-million on revenue of $167.9-million in the coming year. His price target is based on his estimate of Amaya’s fiscal 2014 numbers, when he thinks Amaya will earn $90.5-million on revenue of $217.3-million.

Shares of Amaya Gaming closed today up 4.8% to $5.87.

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