Earnings Preview: International Game Technology

Oct.29.08 | About: International Game (IGT)

International Game Technology (NYSE:IGT) is expected to report Q4 earnings before market open Thursday, October 30, with a conference call scheduled for 9:00 am ET.


Analysts are looking for a profit of 31c on revenue of $626.7M. The consensus range is 29c to 33c for EPS, and revenue of $603M to $648.9M, according to First Call. On its Q3 earnings conference call the company forecast EPS of 30c to 35c "for the next three quarters".

Analyst Views

On the quarter, Citigroup said that while the fundamental environment remains weak, management is "responding appropriately" and is focused on improving market share in video and game content. The firm believes International Game will emerge as a "stronger, more efficient" company in 2010.

In an October 13 note Argus downgraded shares of the company to Sell from Hold on news that some casino operators have replaced many "participation" games, which gave IGT a share of the winnings, with fully owned slot machines in an effort to boost revenues.

On October 16 a Nevada court found three of International Game's patents, including two "wheel" patents and a touch-screen player tracking patent, invalid. It also ruled that Bally Technologies' (NYSE:BYI) iView units do not infringe on International Game's patents. J.P. Morgan's Joseph Greff thinks the decision could benefit IGT because the end of the case frees up time and "allows management to focus on internal resources, product development and right sizing its business model."