IGT Q2 Bottom-Line Tops Street View; Tightens FY22 Revenue Outlook Citing Currency Rates
International Game Technology (NYSE: IGT) reported second-quarter FY22 revenue growth of 3% year-on-year to $1.02 billion (at constant currency), missing the consensus of $1.03 billion. Revenue declined by 2% Y/Y on a reported basis.
Revenue from Global Lottery fell 4% Y/Y to $648 million (CC), Global Gaming rose 23% Y/Y to $330 million (CC), and Digital & Betting increased 4% Y/Y to $43 million (CC).
The operating margin contracted by 100 bps to 22%, as the operating income increased by 1% Y/Y to $228 million (CC).
EPS of $0.57 beat the consensus of $0.29.
IGT held $673 million in cash and equivalents. It generated $196 million in operating cash flow, down 21% Y/Y.
Dividend: The board declared a quarterly cash dividend of $0.20 per share.
"Strong customer and player demand for IGT's products and solutions drove some of our strongest profit results ever in the second quarter and first half of the year," CEO Vince Sadusky said.
Outlook: IGT tightened the FY22 revenue outlook to $4.1 billion - $4.2 billion from $4.1 billion - $4.3 billion versus the consensus of $4.13 billion.
IGT sees Q3 revenue of $1.0 billion - $1.1 billion versus the consensus of $1.01 billion.
Price Action: IGT shares traded higher by 6.44% at $19.92 on the last check Tuesday.
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