International Game Technology Beats on Revenue, Matches Expectations on EPS

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International Game Technology (NYS: IGT) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q2), International Game Technology beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.


Margins dropped across the board.

Revenue details
International Game Technology logged revenue of $541.2 million. The 16 analysts polled by S&P Capital IQ expected to see net sales of $515.7 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $463.4 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.25. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.25 per share on the same basis. GAAP EPS of $0.21 for Q2 were 8.7% lower than the prior-year quarter's $0.23 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 57.9%, 160 basis points worse than the prior-year quarter. Operating margin was 24.0%, 280 basis points worse than the prior-year quarter. Net margin was 11.4%, 360 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $534.2 million. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $2.05 billion. The average EPS estimate is $1.00.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 635 members out of 679 rating the stock outperform, and 44 members rating it underperform. Among 175 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 166 give International Game Technology a green thumbs-up, and nine 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 $19.05.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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