International Game Technology shares tumble as Q4 earnings disappoint

International Game Technology (IGT) on Thursday saw its shares slide over 7% after reporting fourth-quarter earnings of 24 cents per share, 7 cents shy of the Wall Street expectation. On a GAAP basis, the company swung to a loss of 50 cents per share from a profit of 39 cents per share in the year-over period.

Revenue fell 6% year-over-year to $1.27 billion, driven by Sports Betting dynamics in the prior year. However, the top line was in line with the street expectation.

Revenue from the North America Gaming and Interactive segment was $275 million, down 1% in a constant currency basis. The North American Lottery segment, meanwhile, grew 2% to $309 million. While revenue fell 18% in the International segment, in Italy, it was more or less flat compared to the same quarter last year.

For 2019, the UK-based firm expects adjusted EBITDA of $1.70 million to $1.76 billion. Capital expenditures for the same period are anticipated between $450 million and  $550 million.

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CEO Marco Sala said, “We’ve established solid foundations to build on – securing large, long-term Lottery contracts in key markets and executing a full refresh of our gaming machine cabinet and content portfolio. These efforts will translate into improved free cash flow beginning in 2019.”

IGT shares have declined 38% in the trailing 52 weeks. Since the beginning of this year, the stock has gained over 3%.

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