The stock of Las Vegas-based slot machine maker Bally Technologies Inc. sunk this morning after the company's profit fell in its fourth fiscal quarter.
Bally, also a supplier of gaming systems, traded mid morning at $30.17, down $5.07 or 14.4 percent. Earlier today, it was down as much as 20 percent.
On Thursday, Bally said its profit of $25.5 million or 51 cents per share for the quarter ending June 30 was down from $51 million or 89 cents in the year-ago quarter. The numbers in both quarters were affected by one-time items. Factoring out one-time items, operating income fell on higher costs in the 2011 quarter.
For all of fiscal year 2011, Bally earned $98.3 million or $1.81 per share, down from 2010's profit of $137.5 million or $2.38 per share, as slot machine sales fell amid sluggish demand by casinos.
Bally on Thursday also projected fiscal year 2012 earnings per share should exceed $2.15, which disappointed investors.
Bloomberg today reported the company was cut to “neutral” from “overweight” at JPMorgan Chase & Co., which said Bally’s 2012 forecast “will be viewed as disappointing by investors.”