International Game Technology Earnings: Misses Expectations as Profit Falls

S&P 500 (NYSE:SPY) component International Game Technology (NYSE:IGT) reported its results for the first 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 for the First Quarter

Results: Net income for the diversified computer systems company fell to $49.3 million (16 cents per share) vs. $73.7 million (25 cents per share) a year earlier. This is a decline of 33.1% from the year earlier quarter.

Revenue: Fell 1.3% to $445.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: IGT reported adjusted net income of 17 cents per share. By that measure, the company fell short of mean estimate of 22 cents per share. It fell short of the average revenue estimate of $484.6 million.

Quoting Management: “Our first quarter results – generating $100 million of operating income and over $160 million of Adjusted EBITDA – demonstrate the diversity we have built into our global business model and into our profitability. Our international business and gaming operations business continue to show strength and our cost controls remain tight,” said Patti Hart, CEO of IGT. “We anticipate revenues and profit margins strengthening throughout the year and we remain on track to meet our fiscal year 2012 operating goals.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by one cent, and in the third quarter of the last fiscal year, it was ahead by 4 cents.

Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the second quarter has reached 27 cents per share, up from 26 cents. For the fiscal year, the average estimate has moved down from $1.10 a share to $1.06 over the last ninety days.

Competitors to Watch: WMS Industries Inc. (NYSE:WMS), Shuffle Master, Inc. (NASDAQ:SHFL), Multimedia Games, Inc. (NASDAQ:MGAM), GameTech International (NASDAQ:GMTC), Scientific Games Corp. (NASDAQ:SGMS), Bally Technologies Inc. (NYSE:BYI), Gaming Partners Intl. Corp. (NASDAQ:GPIC).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com