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Bear of the Day: SciPlay (SCPL)

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David Bartosiak
·3 min read
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As you can imagine, COVID has been unkind to casino stocks. The industry was at the unfortunate junction of two businesses which were shuddered and suffered greatly. With the broad market recovering off the COVID lows, several casino stocks have hung in there. However, ancillary business which are tied to gaming have still been under pressure. One such company is today’s Bear of the Day.

Today’s Bear of the Day is Zacks Rank #5 (Strong Sell) SciPlay (SCPL). SciPlay Corporation develops and publishes digital games on mobile and Web platforms worldwide. The company offers seven games, which include social casino games, such as Jackpot Party Casino, Gold Fish Casino, Hot Shot Casino, and Quick Hit Slots, as well as casual games comprising MONOPOLY Slots, Bingo Showdown, and 88 Fortunes Slots. Its social casino games include slots-style game play, as well as table games-style game play; and casual games blend slots-style or bingo game play with adventure game features.

The reason for the unfavorable Zacks Rank is negative earnings estimate revisions. Our Zacks Consensus Estimate has been dropping for both the current year and next year. Current year estimates call for 95 cents EPS. That number represents a contraction of 37.91% year-over-year. What is strange for me to see, is revenue growth this year is actually forecast to be 24.59%. I wonder how large that revenue growth number would have to have been in order to see some EPS growth. Some kitchen-sink quarters were no doubt to blame as next year’s EPS growth is forecast at 14.86% on revenue growth of just 1.72%.

SciPlay Corporation Price and Consensus

SciPlay Corporation Price and Consensus
SciPlay Corporation Price and Consensus

SciPlay Corporation price-consensus-chart | SciPlay Corporation Quote

The Gaming Industry ranks in the Bottom 11% of our Zacks Industry Rank. While waiting for earnings to tick back up in stocks like SciPlay, investors have a few other names in the same industry to investigate further. Red Rock Resorts (RRR) is currently a Zacks Rank #1 (Strong Buy) while Full House Resorts (FLL) is a Zacks Rank #2 (Buy).

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SciPlay Corporation (SCPL) : Free Stock Analysis Report

Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report

Full House Resorts, Inc. (FLL) : Free Stock Analysis Report

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