Gainsco (GAN) Misses Q2 EPS by 32c, Reiterates FY Revenue Guidance

Gainsco (NASDAQ: GAN) reported Q2 EPS of ($0.33), $0.32 worse than the analyst estimate of ($0.01). Revenue for the quarter came in at $8.3 million versus the consensus estimate of $8.06 million.

GUIDANCE:

Gainsco sees FY2020 revenue of $37-39 million, versus the consensus of $38.3 million.

• The online casino business is expected to remain strong in the remainder of 2020. The Company continues to be the exclusive online gaming provider of FanDuel’s online casino operations throughout the United States and anticipates launching in both West Virginia and Michigan in the immediate term. The Company has secured significant new customers that will enter Michigan on the GAN platform in Q4.
• The pandemic continues to create some uncertainty around sports gaming for the balance of 2020. In addition, FanDuel deployed their proprietary digital wallet for its sports gaming business, and therefore GAN does not anticipate sports gaming revenues from FanDuel after August 31, 2020. For the full year ended December 31, 2019, GAN derived $3.0 million from FanDuel’s sports gaming operations. However, the Company is launching Internet sports wagering operations with a number of new customers including Parx, which is launching the GAN-developed iOS native app in New Jersey, and expects to launch sports betting in Michigan with three operators. The 2020 revenue contributions from these new customers will depend on customer acquisition and the timing of product launches and market openings.
• In summary, GAN reiterates its full-year 2020 revenue guidance of between $37 million and $39 million.

For earnings history and earnings-related data on Gainsco (GAN) click here.

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