The 10-second takeaway
For the quarter ended March 31 (Q1), Scientific Games missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share contracted to a loss. GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Scientific Games recorded revenue of $219.6 million. The four analysts polled by S&P Capital IQ expected a top line of $227.6 million on the same basis. GAAP reported sales were 6.4% lower than the prior-year quarter's $234.6 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 -$0.05. The four earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. Non-GAAP EPS were -$0.05 for Q1 compared to $0.03 per share for the prior-year quarter. GAAP EPS were -$0.16 for Q1 against $0.02 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 43.2%, 50 basis points worse than the prior-year quarter. Operating margin was 5.2%, 490 basis points worse than the prior-year quarter. Net margin was -6.0%, 680 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $232.1 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $940.8 million. The average EPS estimate is $0.23.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 145 members out of 163 rating the stock outperform, and 18 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 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 $10.33.
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