Deutsche Bank Adjusts GCA Estimates

Deutsche Bank reports that, due to a slower start to year than expected and risk of more volatility in trends, Global Cash Access Holdings, Inc. GCA reduced its low end of 2011 EBITDA (by $3m) and cash EPS (by $0.02) guidance and is now calling for 2011 EBITDA $58-65m and cash EPS $0.38-0.43. “GCA did not provide revs guidance, but its 2011 outlook still assumes slight recovery in gaming based on signs of stabilization in gaming trends, most notably improvement in same store credit $$ vols which were declining at just 2% in April after 12-15% declines over 2009-10,” Deutsche Bank writes. “Our 2011 revs are unchanged at $515m, but we lower our EBITDA from $61.5m to $59m, as we carry fwd shortfall from this Q. “We are lowering our cash EPS from $0.40 to $0.38, allowing for 1Q miss to flow thru, keeping us aligned w/ low end of range.” Global Cash Access closed Tuesday at $3.31.