IGT 2Q15 earnings beat forecasts

Tuesday 11th of August 2015

International Game Technology beat analysts’ expectations with its first full set of earnings in dollars after merging with Italy’s GTECH.

Q2 adjusted EPS were $0.35, above the Capital IQ mean for $0.27. On a GAAP basis, it had a loss of $0.59 a share.

Sales were $1.29 billion, up 36 percent from a year ago and 2 percent above the consensus view.

On a pro forma, constant currency basis, consolidated revenue increased 1 percent, reflecting double-digit increases in the North American Lottery and International segments, partially offset by single-digit declines in the Italy and North America Gaming & Interactive segments. During the quarter, the company sold 10,147 gaming machines worldwide and global lottery same-store revenue excluding Italy increased 7 percent.

It set a quarterly cash dividend of $0.20 per ordinary share. The first cash dividend is payable on September 10 to shareholders of record as of the close of business on August 26.

“All in, it was a good quarter for IGT with numbers beating muted expectations, guidance in line with consensus - and the new reporting structure makes the story cleaner going forward,” Wells Fargo analyst Cameron McKnight wrote in a note.

The company expects to realize $230 million in cost synergies by April 2018 from the merger, and is expected to achieve two-thirds of targeted savings on an annualized basis by April 2016.

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