International Game Technology Earnings: Increasing Costs Tighten Margins as Net Income Falls
S&P 500 (NYSE:SPY) component International Game Technology (NYSE:IGT) reported its results for the third quarter. International Game Technology is a global gaming company that designs, manufactures and markets electronic gaming equipment and systems products.
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International Game Technology Earnings Cheat Sheet
Results: Net income for International Game Technology fell to $46.6 million (16 cents per share) vs. $86.9 million (29 cents per share) a year earlier. This is a decline of 46.4% from the year-earlier quarter.
Revenue: Rose 9% to $532.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: International Game Technology reported adjusted net income of 23 cents per share. By that measure, the company fell short of mean estimate of 28 cents per share. It fell short of the average revenue estimate of $563.8 million.
Quoting Management: “Our third quarter revenue growth and strong cash flows are reflective of our diverse business model. Against the backdrop of an inconsistent global economic recovery, we are generally pleased with this quarter’s results and remain on track to meet our fiscal year 2012 financial goals,” said Patti Hart, CEO of IGT. “The recent announcement of our $1 billion share repurchase is further evidence of our confidence in the outlook for IGT.”
The company’s net income has now fallen for three straight quarters. In the second quarter, net income fell 11.1% from the year earlier, while the figure fell 33.1% in the first quarter.
The company fell short of estimates last quarter after beating the mark the quarter before with net income of 27 cents versus a mean estimate of net income of 25 cents per share.
The company’s revenue has now risen for two straight quarters. In the second quarter, revenue increased 9.9% to $541.2 million from the year-earlier quarter.
Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for fourth quarter is 30 cents per share, an increase from 29 cents sixty days ago. For the fiscal year, the average estimate has moved up from $1 a share to $1.04 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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