International Game Technology
The 10-second takeaway
For the quarter ended March 31 (Q2), International Game Technology beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins expanded, net margins expanded.
International Game Technology booked revenue of $600.0 million. The 19 analysts polled by S&P Capital IQ looked for revenue of $569.9 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $541.2 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 $0.36. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. Non-GAAP EPS of $0.36 for Q2 were 44% higher than the prior-year quarter's $0.25 per share. GAAP EPS of $0.29 for Q2 were 38% higher than the prior-year quarter's $0.21 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 56.9%, 100 basis points worse than the prior-year quarter. Operating margin was 25.5%, 150 basis points better than the prior-year quarter. Net margin was 13.0%, 160 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $580.4 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $2.32 billion. The average EPS estimate is $1.29.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 650 members out of 694 rating the stock outperform, and 44 members rating it underperform. Among 181 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 173 give International Game Technology a green thumbs-up, and eight 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 $17.26.
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