Post-Earnings Analysis - International Game Technology
LONDON, February 17, 2015 /PRNewswire/ --
Editor Note: For more information about this release, please scroll to bottom.
Investor-Edge.com has issued free post-earnings analysis on International Game Technology (NYSE: IGT). On January 27, 2015, the company reported its Q1 FY15 results (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=International%20Game%20Technology&d=17-Feb-2015&s=IGT to read our free earnings review on International Game Technology (IGT). During Q1 FY15, the company reported revenues of $450.6 million and it saw its net operating cash flow increased 35% Y-o-Y. CEO at IGT, Patti Hart, stated that the company's continued focus on profitability has resulted in strong gross margins in Q1 FY15, including improvements in gaming operations gross margins. Our free coverage report can be accessed at:
http://get.Investor-Edge.com/pdf/?c=International%20Game%20Technology&d=17-Feb-2015&s=IGT
Earnings Overview
During Q1 FY15, IGT's GAAP revenue fell 17% Y-o-Y from $541.2 million in Q1 FY14, primarily due to declines in product sales and partially offset by an increase in social gaming revenue. The company's GAAP revenue in Q1 FY15 missed Bloomberg analysts' expectations of $489.6 million. Moreover, IGT's GAAP operating income was $63.5 million for Q1 FY15 compared with $103.7 million in Q1 FY14. Free research on IGT can be downloaded in PDF format at:
http://get.Investor-Edge.com/pdf/?c=International%20Game%20Technology&d=17-Feb-2015&s=IGT
During the reported quarter, IGT's Gaming Operations' revenue fell 5% to $211.1 million from $223.0 million in Q1 FY14 primarily due to installed base declines, and partially offset by improved yield. Furthermore, the company's revenues from product sales in Q1 FY15 declined 39% Y-o-Y to $148.0 million, mainly due to lower machine unit volume, as Q1 FY14 benefited from 2,800 video poker units under a large contract and 825 additional Illinois VLT units. Meanwhile, IGT reported a 23% Y-o-Y rise in Interactive revenues to $91.5 million in Q1 FY15 driven by increases in both average daily active users (DAU) and bookings per DAU.
While market challenges remain in the land-based casino business, the DoubleDown social casino generated a double-digit increase in both revenue and average daily active users in the quarter, Mr. Hart asserted.
In Q1 FY15, IGT's non-GAAP adjusted operating income declined to $85.4 million from $123.8 million in Q1 FY14. However, the company's gross margin increased to 62% in Q1 FY15 from 61% in Q1 FY14, primarily due to improved yield. Sign up and read the free analyst's notes on IGT at:
http://get.Investor-Edge.com/pdf/?c=International%20Game%20Technology&d=17-Feb-2015&s=IGT
The reported quarter constituted of 14 weeks, starting from September 28, 2014 to January 3, 2015, as compared to 13 weeks in Q1 FY14. During one extra week in Q1 FY15, the company generated $22 million in revenues and $2 million in operating income.
For Q1 FY15, IGT's GAAP net income came in at $35.0 million, or $0.14 per diluted share, compared to $79.2 million, or $0.31 per diluted share, in Q1 FY14. Bloomberg analysts' had expected GAAP net income of $61.1 million, or $0.23 per diluted share, for Q1 FY15. Additionally, the company's non-GAAP adjusted net income stood at $47.7 million, or $0.19 per share, in Q1 FY15, compared to $62.9 million, or $0.25 per share, in Q1 FY14.
The company reported net operating cash flow of $102.9 million in Q1 FY15 as opposed to $76.1 million in Q1 FY14. IDT returned $55 million to shareholders through two dividend payments in Q1 FY15. Visit Investor-Edge and access the latest research on IGT at:
http://get.Investor-Edge.com/pdf/?c=International%20Game%20Technology&d=17-Feb-2015&s=IGT
Stock Performance
On the day following the earnings release, January 28, 2015, IGT's stock ended 0.53% lower finishing the session at $16.92. Since then, the stock has mostly witnessed a positive momentum. On the last close, Friday, February 13, 2015, the company's shares finished 0.23% lower at $17.20. The company's shares vacillated between $17.19 and $17.34 during the session. A total of 3.13 million shares were traded which was above its three months average volume of 1.91 million shares. Over the last one month and previous three months, IGT's shares have advanced 1.36%, respectively. Further, the stock has gained 14.90% over the past one year. Shares in the company closed above their 50-day and 200-day moving averages of $17.07 and $16.13, respectively. Furthermore, the stock traded at a PE ratio of 17.27 and has a Relative Strength Index (RSI) of 57.38.
Sneak Peek to Corporate Insider Trading
In the last one month, IGT has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on IGT is available at:
http://get.Investor-Edge.com/pdf/?c=International%20Game%20Technology&d=17-Feb-2015&s=IGT
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