(CRYP) - company earned 59 cents per share, almost 26% higher than the 47 cent estimate

One reason that Cryptologic is a Zacks #1 ranked stock is that it consistently exceeds analyst estimates. The company has done so in five consecutive quarters, four of which registered double-digit surprises. Both analysts covering the stock raised their numbers for this year, while one has done so for next year. Over the past two months, this year's estimates have increased 10.5% to $2.10 per share. Next year's numbers have jumped 8.8% to $1.74 per share. Full Analysis CryptoLogic, Inc. (CRYP) engages in developing and supplying online gaming software on the Internet casino and poker markets of the global online gaming industry. It also provides licensing, e-cash management, and customer support services for its Internet gaming software to third-party gaming operators. The company's online gaming solutions comprises an Internet-based gaming software suite featuring casino table and slot games, player-to-player poker, multi-player bingo, multiple languages, multiple currencies, multiple platforms, play-for-fun and play-for-cash mode, and an integrated, proprietary e-cash management system, as well as customer support services. CRYP released strong earnings for its second-quarter report. The better-than-expected performance was attributable to strong organic growth in online poker software fees and a particularly strong quarter in online casino software fees, driven by the release of innovative new casino games and CryptoLogic's expanded high-margin slot portfolio. These achievements are especially notable because the second quarter is typically slower in online gaming and because the company's licensees had to compete for players' attention with the World Cup-particularly in the UK and Continental Europe. The company earned 59 cents per share, almost 26% higher than the 47 cent estimate. Revenues increased 52% to $30.4 million. "CryptoLogic's new casino games went head-to-head with the World Cup and warm weather-and won. Our Q2 revenue and earnings were far ahead of expectations and surpassed our results in Q1 2006, which is typically a stronger quarter," said Lewis Rose, CryptoLogic's President and CEO. One reason that CRYP is a Zacks #1 ranked stock is that it consistently exceeds analyst estimates. The company has done so in five consecutive quarters, four of which registered double-digit surprises. Both analysts covering the stock raised their numbers for this year, while one has done so for next year. Over the past two months, this year's estimates have increased 10.5% to $2.10 per share. Next year's numbers have jumped 8.8% to $1.74 per share. The stock is attractively valued with a forward price-to-earnings ratio of 14.5. This is below the projected long-term growth rate of 20%, giving the stock a PEG ratio of 0.72. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home