What: Shares of Scientific Games (NASDAQ:SGMS), a developer of technology-based products, services, and content for gaming and lottery, fell as much as 14% on Thursday after the company reported worse-than-expected first-quarter results. At the time of this writing, the stock's decline has improved to about 8%.
So what: Scientific games reported revenue and a loss per share of $682 million and $1.07, respectively. While its first-quarter revenue was up from $658.7 million in the year-ago quarter, its loss was worse than its loss of $1.01 per share in the year-ago quarter.
The negative sentiment toward the stock on Thursday could be due to the fact that both the company's revenue and loss per share were worse than analysts were expecting. Analysts, on average, were expecting the company to report about $689 million in revenue and a loss of $0.91, according to a survey of analysts by Zacks Equity Research. The company's revenue and loss per share was about $7 million and $0.16 below expectations, respectively.
What now: Going forward, management will continue to focus on its strategic priorities, including product excellence, profitable growth, and strengthening cash flow. Scientific Games CEO Gavin Isaacs said in the company's first-quarter press release that action on these priorities is already under way.