Scientific Games Earnings Preview

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If Scientific Games (NAS: SGMS) misses estimates again it will be the third consecutive quarter for the company. The company will unveil its latest earnings on Tuesday, August 9. Scientific Games is a supplier of technology-based products, systems, and services to gaming markets worldwide. 

What analysts say:

What our community says:
CAPS All Stars are solidly behind the stock, with 94.6% granting it an "outperform" rating. The community at large backs the All Stars, with 89.8% assigning it a rating of "outperform." Fools are keen on Scientific Games, though the message boards have been quiet lately with only 55 posts in the past 30 days. Scientific Games' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Revenue has fallen for the past three quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters:

Quarter

Q1

Q4

Q3

Q2

Gross Margin

43.1%

43.2%

39.9%

42.9%

Operating Margin

7.3%

(5.2%)

9.8%

11.4%

Net Margin

(3.5%)

(74.7%)

3.9%

(1.9%)

One final thing: If you want to keep tabs on Scientific Games movements, and for more analysis on the company, make sure you add it to your Watchlist.

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At the time this article was published

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