J.P. Morgan Reports Scientific Games Remains Neutral

According to J.P. Morgan, Scientific Games Corporation SGMS remains Neutral. J.P. Morgan said that following SGMS' 1Q11 earnings release this evening, it is modestly tweaking its 2Q11, 2011, and out-year estimates. “Our 2011 adjusted EBITDA is unchanged at $300m and adjusted EPS goes to $0.05, up from our prior $0.03, on slightly higher printed products and lottery systems margins. In 2012, we project adjusted EBITDA of $317m, down slightly from our prior estimate of $318m due to higher than previously forecasted SG&A. Overall, we believe 1Q results came in below what we view as recently elevated expectations (buy-side & sell-side) going into tonight's print with top-line and bottom-line results coming in lower than Street expectations.” Scientific Games Corporation closed yesterday at $10.54.