22.71 0.00 (0.00%)
After hours: 4:15PM EDT
|Bid||21.60 x 900|
|Ask||23.50 x 3100|
|Day's Range||22.28 - 22.78|
|52 Week Range||14.79 - 62.80|
|Beta (3Y Monthly)||1.83|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 28, 2018 - Mar 5, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||34.33|
Scientific Games (SGMS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
LAS VEGAS and ATLANTA, April 24, 2019 /PRNewswire/ -- Scientific Games Corporation (SGMS) ("Scientific Games" or the "Company") congratulates instant game partner the Kentucky Lottery Corporation (the "Lottery") on breaking its 30-year record for monthly sales, primarily driven by Scratch-off games including its new $30 Break Fort Knox game created to celebrate the Lottery's 30th Anniversary. This beat a record that had stood for nearly three decades – previously the best Scratch-off ticket sales month in Kentucky Lottery history had been the first month of sales in April 1989, which finished at $68.1 million. "Our first $30 price point Scratch-off game featuring our first-ever top prize of $3 million was extremely well-received by Kentucky players," said Kentucky Lottery President and CEO Tom Delacenserie.
What's interesting about Zynga (NASDAQ:ZNGA) over the past few years is that everyone got the stock wrong. That's true from a broad standpoint: ZNGA stock has nearly tripled from early 2016 levels.Source: Shutterstock But it's also true looking more closely at both Zynga bulls and bears. When Zynga stock sat near $2, bulls pointed to the company's huge cash balance, which at times cleared one billion dollars; its wholly-owned headquarters in San Francisco, which ostensibly could be sold; the Empires & Allies game; and its 2014 acquisition of NaturalMotion.Bears (myself included, in the interest of full disclosure) saw Zynga Poker as doomed to follow the declines of older franchises like FarmVille and Mafia Wars, as the company adapted to declining game usage on the Facebook (NASDAQ:FB) platform.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBears obviously have been wrong on the games in particular: Zynga Poker remains the company's top game, according to the 10-K. But the bull case hasn't really played out, either. * 10 Stocks to Sell Before They Give Back 2019 Gains While ZNGA backers were looking at the asset base, the company under former Electronic Arts (NASDAQ:EA) executive Frank Gibeau has ground out an impressive, old-fashioned turnaround. Empires & Allies has been discontinued, and NaturalMotion's CSR2 has been decent but not spectacular. Cost controls, better execution, and smart capital allocation have driven earnings higher - and the Zynga stock price along with it.Now, however, the turnaround is over, as even Zynga management wrote in the company's Q4 shareholder letter. And the question becomes: what now? ZNGA Stock ValuationThe case for ZNGA stock is that valuation is reasonable and growth is on the way. Valuation is a little tricky given that Zynga generates enormous amounts of deferred revenue that wind up being excluded from its profits. The company is guiding for an increase of some $200 million in deferred revenue in 2019: cash that will be brought in from player fees, but won't be recognized as revenue until 2020 and beyond.Still, it appears that ZNGA stock is reasonably valued. Guidance suggests bookings (reported revenue plus the change in deferred revenue) should rise some 39% in 2019. Margins are going to see some pressure, owing in part to upfront investments in research and development. But excluding the deferred revenue shift, adjusted EBITDA seems like it should come in around $250 million or so in 2019.That's a roughly 15-16x EV/EBITDA multiple which is high, but not terribly so in the context of the gaming space. Next year's consensus EPS estimates of $0.26 suggest a roughly 20x multiple, backing out the company's net cash.Valuation obviously is quite different than it was a few years ago. In 2015-2016, the case for ZNGA stock was that value of the assets created a 'floor' under the stock. Now, investors are valuing the business at several billion dollars, which makes some sense. The Case for Zynga StockAfter all, Zynga now has a base on diversified, stable franchises and growth opportunities arriving in the second half. The company claims five "forever" franchises: Words with Friends, Zynga Poker, CSR2, Merge Dragons!, and Empires & Puzzles. All five have held up well for years now and guidance suggests overall bookings for the group should grow in the first half.With the turnaround complete, Zynga now is looking toward new efforts. Per the shareholder letter, new games are coming based on Game of Thrones, Harry Potter, and Star Wars. CityVille and FarmVille are getting new offerings as well.The argument from bears for some time was that eventually, the "forever" franchises would crack. Zynga still generates around 20% of revenue from casino-type games and 15% from Zynga Poker. It seemed likely that at some point users would tire of those games but that hasn't been the case. Overall slots bookings were up modestly in Q4 2018, and represented 21% of the total.That performance has been echoed elsewhere: Caesars Entertainment (NASDAQ:CZR) sold its slot business at an attractive valuation. International Game Technology (NYSE:IGT) made a nice profit on Double Down Entertainment. Scientific Games (NASDAQ:SGMS) is spinning off a piece of its social gaming business to pay down debt.Those social gaming assets (again, about 20% of bookings) clearly have value. The "forever" franchises have proven their worth. Advertising revenue is growing. And the new offerings should drive growth in the second half of 2019 into 2020. What's not to like? The Risks to Zynga StockThere is good news here. But there are worries as well. Zynga Poker is slowing down, per commentary on the Q4 call and the 10-K. Words with Friends appears to be losing users. Zynga's growth looks impressive - but a decent chunk of it has come from acquisitions, including the deal last year to buy the developer of Merge Dragons!.Overall users are relatively flat even with help from acquisitions. Zynga is doing a better job of monetizing those players, including through higher advertising sales, but getting more money from the same amount of users is a difficult long-term goal.As for the new games, the branded games will be less profitable, as Zynga will have to pay licensing fees. And the struggles of other developers like EA in doing justice to Star Wars are well-documented.The bear take here is that Zynga really hasn't been that good at developing games. It launched Zynga Poker a decade ago; the other four "forever franchises" all were acquired. Empires & Allies was a flop. (Empires & Puzzles was picked up through the acquisition of another developer, Small Giant Games.) In between, other than jumping on the social slots trend, Zynga hasn't done much in-house. Now, it has to. Will it do it well? The Bottom Line on ZNGA StockThe other concern is on the valuation front. ZNGA stock is reasonably cheap if an investor excludes share-based compensation. That figure remains huge: some $68 million in 2018. That's over 20% of profits. Exclude that dilution and Zynga stock is pricing in consistent growth for years to come.Can Zynga drive that growth? Certainly. It's done a nice job of late doing exactly that, but the improvement in recent years has come from acquisitions and improving already-developed games. Now, Zynga will have to take a different tack, and it will have to see a lot more success this time around for ZNGA stock to keep climbing.As of this writing, Vince Martin is long shares of IGT. He has no positions in any other securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Oversold Stocks to Run From * 7 Red-Hot E-Commerce Stocks to Consider * 4 Stocks Surging on Earnings Surprises Compare Brokers The post The Remarkable Turnaround in ZNGA Stock Is Winding Up appeared first on InvestorPlace.
Scientific Games Corp. subsidiary SciPlay Corp. has set terms of its initial public offering, in which the publisher of digital games on mobile platforms expects to raise up to $352 million. The company said it is offering 22 million class A shares to the public, with the IPO expected to price between $14 and $16. The stock is expected to list on the Nasdaq under the ticker symbol "SCPL." SciPlay said there will be 22 million Class A shares outstanding after the IPO, or 25.3 million shares if the underwriters exercise all options to buy additional shares, and 104.4 million class B shares outstanding. Class A shares entitle holders to 1 vote and class B shares provide 10 votes. The company is looking to go public at a time the Renaissance IPO ETF has climbed 15.6% over the past three months and the S&P 500 has rallied 10.3%.
LAS VEGAS , April 18, 2019 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games" or the "Company") launched OpenSports, the Company's unparalleled suite of ...
Stocks that moved substantially or traded heavily on Tuesday: Qualcomm Corp., up $13.27 to $70.45 The mobile chip maker settled a long-running financial dispute with iPhone maker Apple. Johnson & Johnson, ...
Shares of the gambling and lottery game maker were trading at $22.28 on the Nasdaq Stock Market, up from Monday's closeof $20.89. Wynn was up as well - by about 0.73% - to $142.85 on Nasdaq. Under the partnership, Scientific Games will join Wynn Resorts to "support" the launch of Wynn's digital sports betting and internet gaming applications in the U.S.
LAS VEGAS , April 16, 2019 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games") will partner with Wynn Resorts, Ltd. ("Wynn Resorts") to support the launch ...
Scientific Games Corp NASDAQ/NGS:SGMSView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is moderate * Economic output in this company's sector is expanding Bearish sentimentShort interest | NeutralShort interest is moderate for SGMS with between 5 and 10% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding SGMS are favorable with net inflows of $71.99 billion. This was the highest net inflow seen over the last one-year.Error parsing the SmartText Economic sentimentPMI by IHS Markit | PositiveAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Scientific Games Corp. subsidiary SciPlay Corp. filed Friday to go public. The developer and publisher of digital games on mobile platforms has not yet determined the number of shares it will offer to the public or the expected pricing of the initial public offering, and has not provided the number of Class A or Class B shares that will be outstanding after the offering. The company has applied to have its Class A shares listed on the Nasdaq under the ticker symbol "SCPL." The Class A shares will entitle holders to have one vote, while Class B shares will have 10 votes. Scientific Games will indirectly own all of the Class B shares. SciPlay had earnings of $39.0 million on revenue of $416.2 million in 2018, compared with earnings of $23.1 million on revenue of $361.4 million in 2017. BofA Merrill Lynch, J.P. Morgan and Deutsche Bank Securities are the lead underwriters of the IPO. SciPlay is looking to go public at a time that the Renaissance IPO ETF has rallied 32% year to date while the S&P 500 has gained 15%.
Social Gaming Business Will Now Be Called "SciPlay" LAS VEGAS , April 5, 2019 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games") announced today that its ...
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LAS VEGAS , April 1, 2019 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games" or the "Company") has strengthened its relationship with Danske Spil, Denmark's ...
LAS VEGAS, March 29, 2019 /PRNewswire/ -- Scientific Games Corporation (SGMS) ("Scientific Games" or the "Company") will showcase its commitment to developing the gaming industry's most innovative products, content, and technology for casinos, mobile gaming and sports betting at the Indian Gaming Tradeshow & Convention, hosted by the National Indian Gaming Association (NIGA) on April 3 and 4 in booth #1631 at the San Diego Convention Center. "We're excited to connect with our partners at NIGA and share with them the latest and most innovative products, content and technology which all work together to create opportunities for players to enjoy great games they love anywhere, anytime, across any channels," said Scientific Games President and CEO, Barry Cottle.
LAS VEGAS and ATLANTA, March 28, 2019 /PRNewswire/ -- Scientific Games Corporation (SGMS) ("Scientific Games" or the "Company") congratulates longtime instant game partner the Florida Lottery (the "Lottery") on breaking another U.S. record for single week retail sales of instant games. Floridians purchased $126,250,558 in Scratch-offs the week ending March 3rd, 2019, which generated more than $23.3 million for the Educational Enhancement Trust Fund that benefits Florida students. The record week of instant game sales crushed the Lottery's previous U.S. record of $123,841,386 set in 2018.
Featuring Munchkins and The Wicked Witch of the East LAS VEGAS , March 27, 2019 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games" or the "Company") launched ...
Scientific Games (SGMS) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
LAS VEGAS, March 19, 2019 /PRNewswire/ -- Scientific Games Corporation (SGMS) ("Scientific Games" or the "Company") today announced that its wholly owned subsidiary, Scientific Games International, Inc. ("SGI"), successfully completed a private offering of $1,100.0 million in aggregate principal amount of new 8.250% senior unsecured notes due 2026 (the "Notes") at an issue price of 100.000%. The net proceeds of the Notes offering will be used to redeem approximately $1.0 billion of SGI's outstanding 10.000% senior unsecured notes due 2022 (the "2022 Notes"), pay accrued and unpaid interest thereon plus any related premiums, fees and costs, and pay related fees and expenses of the Notes offering. The Notes are guaranteed on a senior basis by Scientific Games and certain of its subsidiaries, and the Notes are not secured.
Scientific Games (SGMS) has seen solid earnings estimate revision activity over the past month, and belongs to a strong industry as well.
Scientific Games software, Bally® MultiConnect, to be deployed on 100 games in 20 locations LAS VEGAS , March 11, 2019 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games" ...