Int'l Game Profit Misses Estimates, Softens Outlook; Stock Down - Update

(RTTNews) - International Game Technology (IGT) Thursday reported a 21 percent jump in first-quarter profit, due mainly to a tax benefit. Revenues for the quarter were up two percent on North American demand for social gaming and machine sales, but were offset by higher operating expenses. The results for the quarter missed Wall Street estimates.

The company also softened its outlook for 2014, citing declining gross gaming revenue trends with potential downside risk. IGT shares lost about 9 percent in after-hours trade on the New York Stock Exchange.

IGT makes casino-style gaming equipment, systems technology, and game content for land-based and online markets.

The Las Vegas, Nevada-based company posted quarterly net income of $79 million or $0.31 per share, compared with $65 million or $0.24 per share in the year-ago quarter .

Excluding items, adjusted earnings for the quarter were $63 million or $0.25 per share, compared with $76 million or $0.28 per share a year ago. On average, 20 analysts polled by Thomson Reuters expected earnings of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the first quarter rose 2 percent to $541 million from $530 million last year. Analysts expected revenues of $554.6 million for the quarter.

Revenues at gaming operations slid 8 percent from last year, while product sales revenues were up 4 percent. Revenue at its smaller business, Interactive, gained 41 percent.

Operating expenses were higher at $438 million, compared with $412 million a year ago.

But results were buttressed by income tax benefit of $3.7 million, compared with a tax expense of $32.4 million a year ago.

For fiscal 2014, the company expects adjusted earnings to be at the lower end of its prior guidance range of $1.28 to $1.38 per share.

IGT stock closed Thursday at $17.65, down $0.45 or 2.49%, on a volume of 7 million shares. In after hours, the stock dropped $1.53 or 8.67% at $16.12.