Why Scientific Games Corporation Stock Soared

By Markets Fool.com

Image source: Scientific Games.

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What: Scientific Games, the technology product and service provider for gaming and lottery industries,saw its shares soar 36% today after the company reported better-than-expected fourth-quarter revenue.

So what: The Las Vegas-based company reported revenue and EPS of $737 million and a loss of $1.48, respectively, for the quarter. While analysts were expecting the Scientific Games' loss per share to be narrower -- at $1.20 -- its revenue was significantly higher than the consensus analyst estimate for about $630 million.

Scientific Games' fourth-quarter revenue highlights the company's significant growth, up 30.2% from the year-ago quarter.

Now what: While Scientific Games doesn't provide guidance, management said in its quarterly press release that its "innovation... is already driving our momentum into 2016."

Management continued:

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Our winning edge consists of our people, our innovative new products led by our new TwinStar and Dualos cabinets, our Lottery contract awards, our systems successes, our electronic table growth, and our booming social gaming business. We will not rest on our laurels; we will continue to innovate and to improve our business processes in order to increase cash flow and reduce leverage.

The article Why Scientific Games Corporation Stock Soared originally appeared on Fool.com.

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