International Game Technology Q3 Profit Beats View, But Revenues Miss

(RTTNews) - International Game Technology (IGT) on Tuesday reported a 41 percent increase in profit for the third quarter from last year, primarily due to higher North America product sales and social gaming revenues. Adjusted earnings per share beat analysts' expectations, while revenues missed their estimates. Looking ahead, the slot machine maker reiterated its earnings outlook for fiscal 2013.

Quarterly revenues at the Las Vegas, Nevada-based company's gaming operations declined 4 percent from the year-ago period to $247.3 million, reflecting lower MegaJackpots revenue.

Product sales revenues increased 12 percent from the prior-year period to $259.2 million, due to increased North America machine sales related to Canadian VLT customers as well as increased non-machine sales.

North America machine revenue rose 15 percent from last year, but average machine sales price declined 5 percent to $12,400.

Interactive revenues surged 69 percent from the year-ago period to $72.5 million. Of this, social gaming revenues more than doubled to $61 million, primarily driven by 60 percent growth in average revenue per daily active user to $0.40.

IGT's net income for the third quarter was $65.7 million or $0.25 per share, up from $46.6 million or $0.16 per share in the year-ago period.

Excluding acquisition-related charges for DoubleDown, proxy contest-related fees and building impairment, adjusted earnings from continuing operations for the quarter were $0.33 per share, compared to $0.23 per share in the same period last year.

On average, 19 analysts polled by Thomson Reuters expected the company to earn $0.31 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 9 percent to $579.0 million from $532.8 million in the same period last year. Analysts had a consensus revenue estimate for the quarter of $584.30 million.

Looking ahead, IGT reaffirmed its fiscal year 2013 guidance for adjusted earnings from continuing operations of $1.26 to $1.32 per share. Analysts currently estimate earnings of $1.31 per share for the year.

IGT closed Tuesday's regular trading session at $18.30, down $0.59 or 3.12 percent on a volume of 5.36 million shares. In after-hours, the stock further declined $0.40 or 2.19 percent to $17.90.