International Game Technology Beats on Both Top and Bottom Lines

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International Game Technology (NYS: IGT) reported earnings on April 25. 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 beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share expanded significantly.


Gross margins dropped, operating margins expanded, net margins expanded.

Revenue details
International Game Technology booked revenue of $600.0 million. The 19 analysts polled by S&P Capital IQ looked for revenue of $569.9 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $541.2 million.

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

EPS details
EPS came in at $0.36. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. Non-GAAP EPS of $0.36 for Q2 were 44% higher than the prior-year quarter's $0.25 per share. GAAP EPS of $0.29 for Q2 were 38% higher than the prior-year quarter's $0.21 per share.

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 56.9%, 100 basis points worse than the prior-year quarter. Operating margin was 25.5%, 150 basis points better than the prior-year quarter. Net margin was 13.0%, 160 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $580.4 million. On the bottom line, the average EPS estimate is $0.31.

Next year's average estimate for revenue is $2.32 billion. The average EPS estimate is $1.29.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 650 members out of 694 rating the stock outperform, and 44 members rating it underperform. Among 181 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 173 give International Game Technology a green thumbs-up, and eight 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 $17.26.

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The article International Game Technology Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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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