Scientific Games Corp. Third Quarter Earnings Sneak Peek

Scientific Games Corp. (NASDAQ:SGMS) will unveil its latest earnings on Wednesday, November 2, 2011. Scientific Games is a supplier of technology-based products, systems and services to gaming markets worldwide.

Scientific Games Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 5 cents per share, a decline of 44.4% from the company’s actual earnings for the same quarter a year ago. 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. For the year, analysts are projecting profit of 17 cents per share, a decline of 48.5% from last year.

Past Earnings Performance: Last quarter, the company topped expectations by 4 cents, coming in at net income of 8 cents per share versus a mean estimate of profit of 4 cents per share. This followed two straight quarters of missing estimates.

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Wall St. Revenue Expectations: On average, analysts predict $213.6 million in revenue this quarter, a decline of 3.4% from the year ago quarter. Analysts are forecasting total revenue of $858.5 million for the year, a decline of 2.7% from last year’s revenue of $882.5 million.

Analyst Ratings: Analysts are bullish on this stock with four analysts rating it as a buy, none rating it as a sell and two rating it as a hold.

A Look Back: In the second quarter, the company swung to a profit of $7 million (8 cents a share) from a loss of $4.3 million (5 cents) a year earlier, beating analyst estimates. Revenue fell 5.5% to $220.2 million from $233 million.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 9.1% in the first quarter from the year earlier, dropped 8.9% in fourth quarter of the last fiscal year from the year-ago quarter and 7.6% in the third quarter of the last fiscal year.

Scientific Games’ profit last quarter followed losses in the previous two quarters. The company reported a loss of $6.9 million in the first quarter and a loss of $158.4 million in the fourth 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 September 29, 2011 to October 27, 2011, the stock price had risen $1.42 (18.5%) from $7.68 to $9.10. 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 86 cents (-8.6%) year to date.

(Source: Xignite Financials)

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