Scientific Games Beats on the Top Line

Just the facts, Fool.

Seth Jayson
Seth Jayson
Mar 12, 2013 at 12:00AM
Other

Scientific Games (Nasdaq: SGMS) reported earnings on March 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Scientific Games beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP loss per share grew. GAAP loss per share grew.

Gross margins increased, operating margins contracted, net margins dropped.

Revenue details
Scientific Games reported revenue of $249.2 million. The four analysts polled by S&P Capital IQ foresaw sales of $237.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.23. The four earnings estimates compiled by S&P Capital IQ averaged $0.05 per share. Non-GAAP EPS were -$0.23 for Q4 versus -$0.05 per share for the prior-year quarter. GAAP EPS were -$0.29 for Q4 compared to -$0.10 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.1%, 90 basis points better than the prior-year quarter. Operating margin was -2.2%, much worse than the prior-year quarter. Net margin was -9.9%, 630 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)


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Looking ahead
Next quarter's average estimate for revenue is $234.0 million. On the bottom line, the average EPS estimate is -$0.03.

Next year's average estimate for revenue is $949.8 million. The average EPS estimate is $0.12.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 146 members out of 165 rating the stock outperform, and 19 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 hold, with an average price target of $9.33.

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