Scientific Games Corp Earnings Cheat Sheet: Swinging to a Loss and Missing Estimates

Wall St. Cheat Sheet

Scientific Games Corp swung to a loss in the third quarter, missing analysts’ forecast. Scientific Games is a supplier of technology-based products, systems and services to gaming markets worldwide.

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Scientific Games Earnings Cheat Sheet for the Third Quarter

Results: Reported a loss of $4.1 million (4 cents per diluted share) in the quarter. Scientific Games Corp had a net income of $8.7 million or 9 cents per share in the year earlier quarter.

Revenue: Rose 0.7% to $222.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SGMS fell short of the mean analyst estimate of 5 cents per share. It beat the average revenue estimate of $213.6 million.

Quoting Management: “Our global lottery and gaming operations performed very well this quarter, with mid-teens growth in revenue,” Chairman and Chief Executive Officer A. Lorne Weil commented. “We believe this reflects the investments we’ve made in the past year in our key growth initiatives.We are especially pleased with these results in the face of a quarter that was marked by significant global economic uncertainty. The strength of our recession-resistant business model is borne out in challenging economic times like these, and the pipeline of new opportunities often expands as lotteries and other businesses seek new sources of revenue.”

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the first quarter, which saw a 9.1% decrease.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 8 cents versus a mean estimate of net income of 4 cents per share.

Looking Forward: The average estimate for the fourth quarter remains unchanged at 9 cents a share. At 17 cents per share, the average estimate for the fiscal year has fallen from 28 cents ninety days ago.

Competitors to Watch: International Game Tech. , Multimedia Games, Inc. , Churchill Downs, Inc. , GameTech International , Canterbury Park Holding Corp. , WMS Industries Inc. , Dover Downs Gaming & Entertainment, Inc. , MTR Gaming Group, Inc. , Empire Resorts, Inc. , and Penn National Gaming, Inc .

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(Source: Xignite Financials)

 

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