International Game Tech Shares Slide 10% Premarket After Earnings Miss

By Ciara LinnaneMarketsMarketWatch Pulse

International Game Technology Plc. shares slid 10% in premarket trade Thurday, after the company posted weaker-than-expected earnings for the first quarter. The company said it had a net loss of $55 million, or 27 cents a share, in the quarter, after a loss of $86.4 million, or 46 cents a share, in the year-earlier period. Adjusted per-share earnings came to 29 cents, below the FactSet consensus of 47 cents. Revenue fell to $1.15 billion from $1.28 billion and also fell short of the FactSet consensus of $1.19 billion. "The decline in revenue reflects comparisons with the high jackpot levels of the prior year, new Italy Lotto concession dynamics, and lower gaming product sales," the company said in a statement. The company updated its outlook to reflect the planned sale of DoubleDown Interactive to an affiliate of DoubleU Games, a global social casino operator, for $825 million. That deal is expected to close in the second quarter. The company is now expecting full-year adjusted EBITDA of $1.6o billion to $1.68 billion. Shares are down 18% in 2017 through Wednesday, while the S&P 500 has gained 7%.

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