Why International Game Technology Shares Popped Today
What happened
Shares of gaming supplier International Game Technology (NYSE: IGT) jumped on Tuesday, up 14.6% as of 2:02 p.m. EDT, after the company reported second-quarter earnings.
So what
Revenue fell 5% in the quarter to $1.22 billion and the company reported a net loss of $344.7 million, or $1.43 per share. On an adjusted basis, IGT earned $0.15 per share, which fell short of the $0.32 analysts expected, although that didn't matter much for the stock.
The more notable number may be that analysts were only expecting $1.2 billion in revenue, and surpassing that figure was more important to investors long-term. It was also positive that net debt fell from $7.57 billion at the end of 2016 to $7 billion at the end of the second quarter.
Now what
Management said that global lottery comparable sales were up 2.6% and the decline in revenue was due to new Lotto concession dynamics and the sale of Double Down Interactive. Slowly but surely, the company's performance is improving in core markets like North America and Europe. And the outlook of adjusted EBITDA of $1.6 billion to $1.68 billion stayed flat, meaning management may be able to reduce debt further as the year goes on. That would help de-risk IGT and potentially help drive the stock higher long-term.
10 stocks we like better than International Game TechnologyWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and International Game Technology wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 1, 2017
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.