Aristocrat Leisure reported today that first half net profit—before the change to its balance date outlined in Aristocrat starts to pay out on 4 May 12 (Hold – $3.13)—would be between $30m-$33m. Using the mid-point of the range, it implies first half profit will increase 27% on the $24.9m reported in the previous period. It’s pleasing to see profit growth headed in the right direction.
In spite of what seemed like good news, the share price slumped 11% in response. Market expectations are for a significant lift in profit this calendar year, and the 27% increase wasn’t considered significant enough.