WMS Industries Inc.'s (NYSE:WMS) small cap stock fell sharply to its lowest value in nearly eight years on Tuesday after the gaming equipment company reported fiscal fourth-quarter earnings that were lower than analysts' estimates.
Late Monday WMS announced its net income more than doubled to $22.1 million, or 40 cents per share, from $10.3 million, or 18 cents per share, in the same period a year earlier. This, however, was offset by revenue that fell 4 percent to $195.9 million from $203.2 million.
In response to the report, Nomura Equity Research analyst Harry Curtis lowered his rating on the stock to "reduce" from "neutral," and dropped his price target to $13 from $22, according to Bloomberg.
"While WMS has regained its footing in its core business, intense competition in product sales and game operations is likely to continue for at least another year," he told clients in a note.
As of 3:23 p.m. on Tuesday, August 7, WMS Industries share were down 17.9 percent, or $3.26, to $15.00.