International Game Technology PLC (NYSE:IGT) broke higher in early trading on Tuesday after beating consensus estimates with its Q1 earnings report.
The company said innovative game, hardware, and systems solutions drove better-than-expected results for the Global Lottery and Gaming & Digital segments during the quarter. Global lottery revenue rose 6% year-over-year to $661 million on significantly higher product sales, driven by the delivery of GameTouch 28 self-service terminals in Canada and software upgrades in Singapore and Germany. IGT also pointed to continued same-store sales strength in Italy. “We delivered a record organic profit performance in the first quarter, if we exclude Separation & divestiture costs,” noted CFO Max Chiara.
International Game Technology (IGT) sees full-year revenue of $4.4B, which is better than the prior outlook for $4.3M to $4.4B and the consensus estimate of $4.35B. Looking ahead, International Game Technology (IGT) plans to spin off its gaming and digital business and combine it with Everi Holdings (EVRI). That transaction is expected to close in the late part of 2024 or early 2025. “The ongoing execution while the deal is pending is critical and solid, and therefore generally supportive, given the discounted multiple,” highlighted Jefferies analyst David Katz on the Everi wildcard.
Shares of International Game Technology (IGT) were up 5.88% at 10:00 a.m. on Tuesday vs. the 52-week range of $19.48 to $33.99. The dividend yield for new buyers of the stock is 3.78%.
