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.
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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.
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.
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