International Game Technology Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component International Game Technology (NYSE:IGT) will unveil its latest earnings on Thursday, November 8, 2012. 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 32 cents per share, a rise of 33.3% 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 was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 5.4% compared to last year’s 98 cents.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the third quarter, it reported net income of 23 cents per share against a mean estimate of 28 cents. Two quarters ago, it beat expectations by 2 cents with profit of 27 cents.

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A Look Back: In the third quarter, profit fell 46.4% to $46.6 million (16 cents a share) from $86.9 million (29 cents a share) the year earlier, missing analyst expectations. Revenue rose 9% to $532.8 million from $489 million.

Stock Price Performance: Between August 9, 2012 and November 2, 2012, the stock price rose $1.81 (16.3%), from $11.12 to $12.93. It saw one of its worst periods between February 7, 2012 and February 16, 2012 when shares fell for eight straight days, dropping 7.2% (-$1.14) over that span. The stock price saw one of its best stretches over the last year between August 20, 2012 and August 27, 2012, when shares rose for six straight days, increasing 3.7% (+43 cents) over that span.

Wall St. Revenue Expectations: On average, analysts predict $589.5 million in revenue this quarter, a rise of 9.2% from the year-ago quarter. Analysts are forecasting total revenue of $2.11 billion for the year, a rise of 7.7% from last year’s revenue of $1.96 billion.

Key Stats:

After experiencing income drops the past three quarters, the company is hoping to use this earnings announcement to rebound. Net income fell 33.1% in the first quarter, by 11.1% in the second quarter and again in the third quarter.

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 9.9% in the second quarter before climbing again in the third quarter.

Analyst Ratings: There are mostly holds on the stock with 10 of 19 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.04 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.16 in the second quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 4.6% to $1.19 billion while liabilities rose by 0.9% to $579.8 million.

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

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