Scientific Games Second Quarter Earnings Sneak Peek

Scientific Games Corp. (NASDAQ:SGMS) will unveil its latest earnings on Tuesday, August 9, 2011. Scientific Games Corporation is a supplier of technology-based products, systems and services to gaming markets worldwide. It also gain access to technology and pursue global expansion through strategic joint ventures and minority investments.

Scientific Games Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 4 cents per share, a decline of 71.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 6 cents. Between one and three months ago, the average estimate moved down and dropped from 5 cents during the last month. For the year, analysts are projecting net income of 28 cents per share, a decline of 15.2% from last year.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported net loss of 8 cents per share versus a mean estimate of profit of 3 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $210.7 million in revenue this quarter, a decline of 9.6% from the year ago quarter. Analysts are forecasting total revenue of $851.6 million for the year, a decline of 3.5% from last year’s revenue of $882.5 million.

Analyst Ratings: three out of five analysts surveyed (60%) have a buy rating on Scientific Games.. This is below the mean analyst rating of 10 competitors, which average 61.8% buy ratings.

Key Stats:

Revenue has fallen for the past three quarters. In first quarter, revenue declined 9.1% to $196.7 million while the figure fell 8.9% in fourth quarter of the last fiscal year from the year earlier and 7.6% in the third quarter of the last fiscal year.

Competitors to Watch: International Game Tech. (NYSE:IGT), Multimedia Games, Inc. (NASDAQ:MGAM), Churchill Downs, Inc. (NASDAQ:CHDN), GameTech International (NASDAQ:GMTC), Canterbury Park Holding Corp. (NASDAQ:CPHC), WMS Industries Inc. (NYSE:WMS), Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE), MTR Gaming Group, Inc. (NASDAQ:MNTG), Empire Resorts, Inc. (NASDAQ:NYNY), and Penn National Gaming, Inc (NASDAQ:PENN).

Stock Price Performance: During May 9, 2011 to August 3, 2011, the stock price had fallen $1.59 (-15.4%) from $10.31 to $8.72. The stock price saw one of its best stretches over the last year between April 19, 2011 and April 29, 2011 when shares rose for eight-straight days, rising 19.9% (+$1.75) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine-straight days, falling 10.9% (-$1.05) over that span. Shares are down $1.24 (-12.4%) year to date.

(Source: Xignite Financials)

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