IGT cuts guidance, announces layoffs; shares -7.2% AH


IGT now expects FY14 (ends Sep. '14) EPS of $1-$1.10, below prior guidance of $1.28-$1.38 and a $1.20 consensus. FQ2 guidance is for EPS of $0.17-$0.19, below a $0.29 consensus. (PR)

The gaming machine maker says it saw "a sharp decline in North American gross gaming revenues," and "further degradation in the international currency, compliance, and importation environment."

IGT also says it's cutting 7% of its 5K-employee workforce. The cuts are expected to yield cost savings of $50M/year. Nonetheless, the company will continue spending $200M/year on R&D.

CC at 8:30AM ET tomorrow.

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Comments (2)
  • 96815234
    , contributor
    Comments (1937) | Send Message
     
    I dont trust IGT management after their internet "non-disclosures" last quarter, and frankly that was the only reason I owned the name.

     

    Happy I sold higher. Looks like it could really get crushed.
    25 Mar 2014, 05:05 PM Reply Like
  • ricky4642
    , contributor
    Comments (3) | Send Message
     
    this is a crummy company which has been consistently inaccurate with its forward
    looking views; probable fair market value now: 10-12
    26 Mar 2014, 02:07 AM Reply Like
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