The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Scientific Games missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP loss per share grew.
Margins dropped across the board.
Scientific Games logged revenue of $227.5 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $233.2 million on the same basis. GAAP reported sales were 2.1% higher than the prior-year quarter's $222.7 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 -$0.08. The five earnings estimates compiled by S&P Capital IQ anticipated $0.07 per share. GAAP EPS were -$0.30 for Q3 versus -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.4%, 60 basis points worse than the prior-year quarter. Operating margin was 6.6%, 420 basis points worse than the prior-year quarter. Net margin was -11.9%, 1,000 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $237.9 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $934.9 million. The average EPS estimate is $0.25.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 147 members out of 165 rating the stock outperform, and 18 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Scientific Games a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Scientific Games is outperform, with an average price target of $10.25.
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