International Game Technology Stock Falls Despite Q2 EPS Beat; Revenue Misses Estimates

International Game Technology IGT shares are trading lower after releasing results for the second quarter.

The company reported quarterly adjusted earnings per share of 36 cents, beating the analyst consensus of 32 cents.

Second-quarter revenues of $1.049 billion missed the street view of $1.059 billion, as strength in Gaming & Digital is offset by elevated prior year product sales in Global Lottery.

International Game Technology said it generated over $460 million in cash from operations and over $260 million in free cash flow in the first half of the year.

Adjusted EBITDA was stable at $446 million, and Adjusted EBITDA margin expanded by 30 basis points.

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“The recently announced sale of our Gaming & Digital business for $4.05 billion in cash is an important step in unlocking the intrinsic value of IGT’s best-in-class businesses,” said Vince Sadusky, CEO.

Global Lottery revenue of $613 million decreased 2% year-over-year, primarily due to a multi-year software license sale in the prior year.

Gaming & Digital revenue of $436 million was up 1% versus the prior year.

Total liquidity of $1.7 billion as of June 30, 2024; $0.4 billion in unrestricted cash and $1.3 billion in additional borrowing capacity from undrawn credit facilities.

International Game Technology declared a quarterly cash dividend of $0.20 per common share (payment date of Aug. 27, 2024).

Due to the planned sale of the Gaming & Digital business, the company expects to classify and report Gaming & Digital results as discontinued operations beginning in the third quarter of 2024.

As a result, International Game Technology is withdrawing its previously provided full-year financial outlook.

Price Action: IGT shares are trading lower by 3.16% to $22.71 at last check Tuesday.

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