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
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
Jul. 16, 2014, 9:14 AM
Jul. 10, 2014, 9:14 AM
Jun. 13, 2014, 12:43 PM
- Holding company MacAndrews & Forbes is interested in bidding for IGT, as are P-E firms Apollo Global and Carlyle, Reuters reports.
- The news service reported on Monday IGT had "attracted interest from other gaming companies as well as private equity firms," but didn't give names.
- Scientific Games (SGMS) and Bally (BYI) are once more following IGT higher.
Jun. 9, 2014, 4:00 PM
- Reuters reports IGT (IGT +14.3%) has "attracted interest from other gaming companies as well as private equity firms," as it works with Morgan Stanley to explore a sale.
- Presentations for prospective buyers are reportedly being held. Sources caution uncertainty related to the selloff in IGT's shares could turn buyers away, and that a lengthy regulatory review process might await.
- Tumbling gaming product sales have and soft game operations revenue have led IGT to deliver multiple earnings disappointments. The company's interactive (social gaming) ops have fared better.
- Peers Scientific Games (SGMS +5.1%) and Bally (BYI +1%) have received sympathy bids.
- Earlier: IGT jumps on takeover talk
Jun. 9, 2014, 3:27 PM
Apr. 23, 2014, 2:07 PM
- IGT (IGT -10.4%) posted FQ2 EPS that was slightly above the guidance provided in a March 25 warning, and reiterated a forecast for FY14 (ends Sep. '14) EPS of $1-$1.10. But the company also reported gaming product sales (40% of revenue) fell 27% Y/Y to $202.6M, after having grown 4% in FQ1. Machine units recognized fell 45% to 7.9K, a reversal from FQ1's 20% growth.
- Gaming operations revenue fell 9% Y/Y to $230.4M (-8% in FQ1), with IGT's installed base falling 6% to 53.4K and yield declining 5% to $47; weaker MegaJackpots revenue is blamed.
- Interactive revenue rose 20% Y/Y to $79.8M (thanks to a 27% increase in social gaming revenue), but that's a slowdown from FQ1's 41%. DoubleDown's MAUs fell 1% to 6.2M after growing 26% in FQ1, but its bookings per DAU rose 16% to $0.43.
- Peers are also lower: BYI -3.9%. MGAM -2.1%. SGMS -4.1%.
- FQ2 results, PR, CC transcript
Apr. 23, 2014, 12:45 PM
Mar. 26, 2014, 9:14 AM
Mar. 25, 2014, 5:37 PM
Mar. 25, 2014, 4:33 PM
- 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.
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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