International Game Technology Increases Sales but Misses Revenue Estimate

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

The 10-second takeaway
For the quarter ended June 30 (Q3), International Game Technology missed estimates on revenues and earnings per share.

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

Margins dropped across the board.

Revenue details
International Game Technology reported revenue of $532.8 million. The 16 analysts polled by S&P Capital IQ expected to see sales of $564.2 million on the same basis. GAAP reported sales were 9.0% higher than the prior-year quarter's $489.0 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 $0.23. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.28 per share. GAAP EPS of $0.16 for Q3 were 43% lower than the prior-year quarter's $0.28 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)

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 56.8%, 220 basis points worse than the prior-year quarter. Operating margin was 22.8%, 660 basis points worse than the prior-year quarter. Net margin was 8.7%, 910 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $574.0 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $2.12 billion. The average EPS estimate is $1.02.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 640 members out of 682 rating the stock outperform, and 42 members rating it underperform. Among 153 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 147 give International Game Technology a green thumbs-up, and six 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 $19.73.

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The article International Game Technology Increases Sales but Misses Revenue Estimate 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. 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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