International Game Technology Earnings: Here’s Why Investors are Ambivalent Now

International Game Technology (NYSE:IGT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

International Game Technology Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 43.48% to $0.33 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 8.67% to $579 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: International Game Technology reported adjusted EPS income of $0.33 per share. By that measure, the company beat the mean analyst estimate of $0.31. It missed the average revenue estimate of $584.3 million.

Quoting Management: “We are pleased to report another quarter of strong financial performance demonstrated by growth in revenue, operating income and EPS,” said Patti Hart, CEO of IGT. “Our momentum continues and is bolstered by our focused attention on the execution of our business strategy and positive leverage from the broad distribution of our best-in-class content.”

Key Stats (on next page)…

Revenue decreased 3.5% from $600 million in the previous quarter. EPS decreased 8.33% from $0.36 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.37 to a profit $0.36. For the current year, the average estimate has moved up from a profit of $1.26 to a profit of $1.31 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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