Scientific Games Earnings: Here’s Why Investors Like These Results

Scientific Games Corporation (NASDAQ:SGMS) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1%.

Scientific Games Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.15 in the quarter versus EPS of $-0.14 in the year-earlier quarter.

Revenue: Rose 2.48% to $235 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Scientific Games Corporation reported adjusted EPS loss of $0.15 per share. By that measure, the company missed the mean analyst estimate of $0.02. It beat the average revenue estimate of $230.57 million.

Quoting Management: “Our business has performed well since our last update,” Chairman and Chief Executive Officer A. Lorne Weil commented. “In addition to benefitting from strong U.S. lottery retail sales, we won a number of new contracts and extensions and have made significant progress on our pending acquisition of WMS. The New Jersey Lottery’s award of a marketing and sales services contract to our joint venture reflects our success in demonstrating to lotteries how our industry-leading instant game management and other lottery outsourcing programs may help improve lottery performance. We are also pleased with the progress we continue to make in our planning for the successful integration of WMS, while both companies remain focused on serving our respective customers and securing future business.”

Key Stats (on next page)…

Revenue increased 7.02% from $219.59 million in the previous quarter. EPS increased to $-0.15 in the quarter versus EPS of $-0.16 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.06 and has not changed. For the current year, the average estimate has moved down from a profit of $0.08 to a profit of $0.05 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)