Why IGT Shares Are Surging Today

International Game Technology IGT reported first-quarter FY22 revenue growth of 4% year-on-year to $1.05 billion, above the consensus of $1.04 billion.
Revenue from Global Lottery fell 9% Y/Y to $680 million, Global Gaming rose 42% Y/Y to $325 million, and Digital & Betting increased 24% Y/Y to $47 million.
The operating margin contracted by 200 bps to 24%, as the operating income declined 3% Y/Y to $252 million.
The adjusted EBITDA margin contracted 300 bps to 41%.
EPS of $0.39 beat the consensus of $0.32.
IGT held $685 million in cash and equivalents and generated $189 million in operating cash flow.
"The first-quarter results clearly reflect the power of our portfolio," said Vince Sadusky, CEO. "The quarter's strong margin profile highlights the long-term recovery of the gaming business as well as increased levels of lottery play from pre-COVID periods."
Dividend: The board declared a quarterly cash dividend of $0.20 per share, payable on June 7, 2022, to shareholders of record on May 24, 2022.
Outlook: IGT reiterated the FY22 revenue outlook of $4.1 billion - $4.3 billion versus the consensus of $4.17 billion.
IGT sees Q2 revenue of $1 billion - $1.1 billion versus the consensus of $1.04 billion.
Price Action: IGT shares traded higher by 9.63% at $19.99 on the last check Tuesday.