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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.

Photo by Benoit Dare on Unsplash

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.

READ: Gaming stocks: A look at the three major players

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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