International Game Technology
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), International Game Technology beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins expanded across the board.
International Game Technology logged revenue of $530.3 million. The 17 analysts polled by S&P Capital IQ predicted revenue of $525.0 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $445.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.28. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. GAAP EPS of $0.24 for Q1 were 41% higher than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 58.4%, 190 basis points better than the prior-year quarter. Operating margin was 25.6%, 320 basis points better than the prior-year quarter. Net margin was 12.3%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $581.0 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $2.30 billion. The average EPS estimate is $1.24.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 655 members out of 697 rating the stock outperform, and 42 members rating it underperform. Among 181 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 174 give International Game Technology a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on International Game Technology is outperform, with an average price target of $16.60.
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