International Game Technology First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component International Game Technology (NYSE:IGT) will unveil its latest earnings tomorrow, Tuesday, January 22, 2013. International Game Technology is a global gaming company that designs, manufactures and markets electronic gaming equipment and systems products.

International Game Technology Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 24 cents per share, a rise of 41.2% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down. It has risen from 23 cents during the last month. Analysts are projecting profit to rise by 19.2% versus last year to $1.24.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the fourth quarter of the last fiscal year, it reported net income of 38 cents per share against a mean estimate of profit of 32 cents per share. In the third quarter of the last fiscal year, it missed forecasts by 5 cents.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 65% to $88.1 million (32 cents a share) from $53.4 million (17 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 16.9% to $631.1 million from $539.8 million.

Here’s how International Game Technology traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

IGT

Wall St. Revenue Expectations: Analysts are projecting a rise of 18.2% in revenue from the year-earlier quarter to $526.4 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.0 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.04 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 8.7% to $630.3 million while assets rose 6.6% to $1.26 billion.

Key Stats:

After some good news last quarter, the company is trying to build on the result with this upcoming earnings announcement. Net income fell in the first quarter of the last fiscal year, the second quarter of the last fiscal year and the third quarter of the last fiscal year before snapping that run with a profit increase in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 9.9% in the second quarter of the last fiscal year and 9% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.

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