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What: Scientific Games
So what: The lottery was unkind as the company lost contracts and customers traded down to lower-margin products. Revenue fell 7.6% to $221.1 million, but net income tumbled 56% to $6.6 million or $0.07 per share.
Now what: Scientific Games has a history of underperforming expectations, and this quarter was no different. I don't see a reason to buy the shares given the loss of contracts, low margins, and history of underperformance. You could try to scratch off a few more shares, but don't be surprised if the results are just as disappointing as the last year for this stock.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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