On August 1, gaming supplier International Game Technology (NYSE:$IGT) saw its shares increase. Even though earnings only surpassed expectations on the top line, it was still enough to push the company’s stock higher. As of 2:02 p.m. EDT, IGT shares were up 14.6%, following the company’s release of their second-quarter earnings.
What Does This Mean?
In the quarter, revenue dropped 5% to $1.22 billion. The Reno, Nevada-based company also reported a net loss of $344.7 million ($1.43 per share). In terms of adjusted basis, the stock earned $0.15 per share, which fell short of what analysts had expected ($0.32).
Perhaps one of the most important takeaways from the report is that analysts had only forecast $1.2 billion in revenue. Being able to pass such a figure is extremely important to investors. Additionally, it was welcome news to hear that net debt dropped from $7.57 billion to $7 billion at the end of Q2.
What Does the Future Hold?
According to the company’s management, global lottery comparable sales were up 2.6%. Additionally, the decline in revenue was primarily caused by new Lotto concession dynamics and the sale of Double Down Interactive. However, the company’s overall performance is starting to improve in core markets. Meanwhile, the outlook of adjusted EBITDA of $1.6 billion to $1.68 stayed relatively flat. This means management has the potential to reduce debt further as the year continues. If this were to happen, it would help take the risk out of International Game Technology and move the stock higher long-term.
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