Wed, Aug. 19, 12:32 PM
- Goldman's Steven Kent has launched coverage on IGT (IGT -3.6%) with a Sell rating and $15.50 target, and on fellow gaming machine maker Scientific Games (SGMS -8.6%) with a Sell and $7.50 target.
- Regarding IGT, Kent sees "limited clarity around [Gtech merger] synergies, cash use, and brand integration," and thinks the company will likely be “challenged by acquisition-related issues, declining market share, and concentration in Italy/lottery.” He adds a survey of slot managers indicated 44% plan to buy fewer IGT machines this year.
- Likewise, Kent thinks SGMS could suffer "growing pains" related to the Bally Technologies merger, and notes it's "the single most levered company in our coverage [universe]," with $8.4B in net debt. Capex needs, meanwhile, are seen potentially offsetting operating expense cuts.
Tue, Aug. 11, 2:13 PM
- IGT has rallied towards $20 on a down day for stocks after beating Q2 EPS estimates, slightly missing on revenue, and announcing a $0.20/share post-merger quarterly dividend.
- Cost savings related to the Gtech merger provided a lift to EPS. IGT is aiming for $230M/year in cost synergies by April 2018, and to achieve 2/3 of this total by April 2016.
- Though officially rising 36% Y/Y, Q2 revenue fell 9% on a pro forma (merger-adjusted) basis. North American Gaming & Interactive revenue -8% to $353M; North American Lottery +14% to $270M (-3% exc. year-ago penalties); International +2% to $247M (+17% exc. forex); Italy -22% to $432M (-4% exc. forex).
- North American machine and social gaming revenue was strong, while non-machine and participation revenue was soft. International sales benefited from lottery terminal and machine growth; Italian sales benefited from lottery growth, and were hurt by higher taxes.
- IGT ended Q2 with $557M in cash, and $8.38B in net debt.
- Q2 results, PR
Tue, Aug. 11, 7:37 AM
Tue, Aug. 11, 7:07 AM
Tue, Jul. 21, 11:20 AM
- MGM Resorts (MGM +0.5%) is working on introducing next-gen wagering technology to be used in states where sports betting is legal. A mobile app is expected as early as this November.
- The company is tasking International Game Technology (IGT +0.8%) with designing the full booking system.
- MGM has increased its focus on sports betting revenue after opening its new 20K-seat arena on the Las Vegas Strip and with daily fantasy game popularity rising.
- There's also the possibility that more states will legalize sports betting. International Game Technology is well-positioned to benefit from that trend.
Mon, Jun. 29, 1:47 PM
- The Internet Poker Freedom Act was introduced last week in the House of Representatives by Rep. Joe Barton from Texas. The bill aims to legalize online poker under a federal framework.
- The Senate has the Restoration of America’s Wire Act in front of it which calls for a major crackdown on all forms of online gambling. Las Vegas Sands (LVS -1.8%) chairman Sheldon Adelson is a sponsor of the legislation and longtime advocate of banning online gambling.
- The burgeoning sports betting industry which includes daily fantasy game sites such as FanDuel and DraftKings will be watching the developments on Capital Hill closely.
- Previously: Momentum builds for legalized sports betting (March 10)
- Related stocks: MGM, WYNN, CZR, OTCPK:EIHDF, SGMS, BYD, IGT, OTCPK:PYGMF, CHDN, ZNGA.
Fri, May 15, 4:07 PM
- Senate Bill 9 has been passed by both legislative chambers in Nevada, clearing the way for skills-based casino floor games.
- The development also opens a door for videogame sellers to create or license casino versions of their popular titles.
- The casino industry has its eyes on attracting millennials after seeing the group show tepid demand for classic table games and slot machines.
- New Jersey and Mississippi have also set the stage for casino floor innovation with similar legislation.
- Previously: Paging Steve Nash to the Borgata (Feb. 13)
- Related stocks: CZR, WYNN, SGMS, ISLE, PNK, PENN, MCRI, CNTY, IGT, MGM, BYD, OTCQB:TPCA, ATVI, TTWO, EA.
- Related ETFs: BJK
Wed, May 13, 7:10 AM
Tue, May 12, 5:30 PM
Tue, May 12, 12:51 PM
- Senator Harry Reid says he will consider supporting a full ban of online gaming in the U.S. if he can't carve out an exemption for poker.
- Currently, there is a bill floating around the House of Representatives that stands a decent chance of making it to the Senate this year.
- Most casino operators support online gaming due to the strength of their brand, although a notable exception is Las Vegas Sands (NYSE:LVS) with outspoken CEO Sheldon Adelson.
- A federal ban on online gaming could also have implications for the growing online sports fantasy games industry which has steered clear of tight regulatory review so far.
- Related stocks: MGM, WYNN, CZR, OTCPK:EIHDF, OTCPK:AMYGF, SGMS, BYD, IGT, ZNGA, OTCPK:PYGMF, CHDN.
Fri, Apr. 17, 5:36 PM
Thu, Apr. 16, 3:19 PM
- Today's notable tech gainers include Chinese online gaming/entertainment platform YY (YY +4.5%), Chinese search engine/portal owner Sohu (SOHU +5.4%), U.S. solar installer Vivint (VSLR +4.9%), U.S. solar installer Vivint (VSLR +4.9%), solar power optimizer/inverter maker SolarEdge (SEDG +5%), M2M hardware/software provider I.D. Systems (IDSY +8.9%), DSP core IP provider Ceva (CEVA +7.2%), cloud healthcare software provider Castlight (CSLT +6.1%), and NAND controller/4G transceiver vendor Silicon Motion (SIMO +4.8%). The Nasdaq is nearly flat.
- Notable decliners include local services marketplace Angie's List (ANGI -6.6%), IP licensing firm Acacia (ACTG -4.4%), and gaming system maker IGT (IGT -5.1%).
- Dougherty has launched coverage on I.D. Systems at Buy, and Canaccord has done the same for Ceva. Vivint is one of several solar firms to get an Outperform rating from Avondale Partners. Silicon Motion has surged to fresh 52-week highs, and is up 22% since last week's Q1 pre-announcement.
- Angie's List is giving back some of the big gains seen yesterday after announcing long-time CEO Bill Oesterle plans to retire, and slightly hiking its 2015 adjusted EBITDA guidance. IGT is returning a chunk of the gains seen last week following the closing of the Gtech merger.
- Previously covered: Etsy, AMD, Fairchild, SanDisk, 58.com, Audience, Travelzoo, Sequans, Carbonite, Identiv
Tue, Apr. 7, 12:53 PM
- IGT's $4.7B merger with Italian lottery system/service provider Gtech is officially on the books. On their first day of trading, the post-merger company's shares have surged towards $20.
- The merged company, which goes under the IGT name, is the world's biggest provider of both lottery and gaming machines. Its total annual sales top $6B.
Tue, Apr. 7, 9:13 AM
Fri, Mar. 27, 6:33 PM
- Realty Income (NYSE:O) is up 3.3% in after-hours trade as it's set to join the S&P 500, replacing Windstream Holdings (NASDAQ:WIN), itself down 5.1% today and -0.5% after hours.
- Windstream -- spinning off assets into a REIT -- will head to the S&P MidCap 400 to replace International Game Technology (NYSE:IGT), which is being acquired by GTECH. Meanwhile, Douglas Emmett (DEI, up 2.1% after hours) will replace Realty Income in the MidCap 400 after trading on April 6.
- In other moves, Gentherm (THRM, +1.8% late) replaces buyout target Aviv REIT (NYSE:AVIV) in the S&P SmallCap 600 after trading on April 1; and Echo Global Logistics (ECHO, +1.9% late) will replace C&J Energy Services (NYSE:CJES) in the SmallCap 600 after trading April 1, as C&J is merging with part of Nabors.
Fri, Feb. 13, 1:23 PM
- The Borgata (MGM, BYD) announces it will offer a skills-based basketball competition after landing approval from New Jersey regulators.
- Casino visitors can enter a basketball free-throwing shooting contest in a poker-style tournament that pays off a majority of the pot to the last few survivors.
- The contest is even open to professionals.
- The development in Atlantic City follows news from earlier this week on pending legislation in Nevada proposing to allow video game contests in casinos.
- What to watch: An apathetic attitude by millennials toward slot machines and video poker is partially behind the innovation push in the casino sector.
- Related stocks: CZR, WYNN, SGMS, ISLE, PNK, PENN, MCRI, CNTY, IGT.
- Related ETF: BJK.
IGT vs. ETF Alternatives
International Game Technology PLC is an end-to-end gaming company. The Company is engaged in providing lottery and gaming technology solutions and services from Gaming Machines and Lotteries to Interactive and Social Gaming.
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