Good news has been pouring out of lottery giant GTECH Holdings (NYSE:GTK). Regarding the Brazilian government's questioning its handsomely profitable contracts, fellow contributor Rich Smith reported yesterday that "Brazilian law enforcement has decided not to prosecute either the company or three of its current and former executives." And yesterday, the company announced that it had won a five-year contract for Finland's lottery system.

Today's news, the company's third-quarter earnings, didn't quite have the winning numbers. Revenue grew a strong 23.8% over the year-ago quarter, but that growth failed to trickle down to the bottom line. Net income declined $12,000 from last year's third quarter, which, for a company doing $316 million in sales, means income was basically flat.

The company will not hit the earnings jackpot next quarter either. GTECH now expects to earn $0.31 to $0.33 a share next quarter, which lags the $0.36 analysts had been expecting.

Those looking for a big payoff next fiscal year will also be disappointed. GTECH's guidance of $1.53 to $1.58 is one thin dime higher than this year's forecast -- and prices the stock at a reasonable, but not cheap, 17 times forward earnings.

While the company is trying to expand into commercial gaming technology and financial services transaction processing, main competitor Scientific Games (NASDAQ:SGMS) has expanded its online gaming presence by purchasing IGT Online Entertainment from International Game Technology (NYSE:IGT). Scientific Games also expects to grow EPS 51% this year and 23% next year.

What makes GTECH interesting is its strong free cash flow. It has been using that cash to make acquisitions, as fellow contributor Tom Taulli investigated last year. But, with a chubby net debt (total debt minus cash) of $449.5 million, the company needs to turn its acquisitions into cash generators before the lottery market matures.

For now, while revenue growth is encouraging, earnings growth -- the more important number -- at this lumbering giant looks less than stellar for the coming five quarters.

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Fool contributor W.D. Crotty does not own stock in any of the companies mentioned.