Bally Slot Casino Slot Machine

Will the EPS of a company be affected if they sell one of their largest assets?

So, Bally Technologies designs and sells video slot machines, and just sold its one casino for 80 million to put more focus on their main business. Would this extra cash be reflected on the earnings per share for the next quarter?

Extra cash gained by selling casino would have an impact on EPS depending upon how this cash is put to use by the management.Cash can impact EPS in many ways. If company pays off its debts, it will reduce interest or if they invest the cash it will bring in interest income, both will have a positive impact on EPS. If they decide to use this cash for making some capital expenditure/investment, it will not result in any immediate impact on EPS, but in future when the company starts realizing returns from the investment, it will also have a positive impact.
There would be immediate negative impact on EPS because of loss of income from the casino business. So it is imperative for the company to utilize the extra cash in such a way to maximize shareholders return.

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