Nomura Securities Maintains a 'Neutral' on International Game Tech (IGT); Several Core Profit Drivers Have Weakened - Cutting PT & Estimates
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Price: $16.29 --0%
Rating Summary:
12 Buy, 14 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 14 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on International Game Tech (NYSE: IGT) price target cut from $20 to $17.
Analyst, Harry Curtis, said, "We note several key questions from the results. 1) Product sales were ~$23M below our est. with the miss largely coming from N.A non-box sales. 2) Product sales margin was 50.8% vs. our 54.8% est. The miss was due to lower-than-expected int’l units and also lower N.A. non-box revs, which are higher margin products. 3) There was a sequential decline in gaming operations daily win/unit, which appeared steeper than normal. 4) DoubleDown impact still an unknown. The treatment of deferred revenue is still subject to discussion by IGT’s auditors (e.g. deferred over 1mth vs. 6mths). We are lowering our FY12 EPS est to $1.00 from $1.08 to reflect the FYQ1’12 results and also lower non-box sales, product sales margin and daily win/unit margin for the remainder of FY2012. We now est FY13 EPS of $1.27, up from $1.25. We value IGT on avg. ’12 and ’13 EPS, which is now $1.14, down from $1.17 and we apply a 15x multiple, which results a $17 PT."
For an analyst ratings summary and ratings history on International Game Tech click here. For more ratings news on International Game Tech click here.
Shares of International Game Tech closed at $15.87 yesterday.
Analyst, Harry Curtis, said, "We note several key questions from the results. 1) Product sales were ~$23M below our est. with the miss largely coming from N.A non-box sales. 2) Product sales margin was 50.8% vs. our 54.8% est. The miss was due to lower-than-expected int’l units and also lower N.A. non-box revs, which are higher margin products. 3) There was a sequential decline in gaming operations daily win/unit, which appeared steeper than normal. 4) DoubleDown impact still an unknown. The treatment of deferred revenue is still subject to discussion by IGT’s auditors (e.g. deferred over 1mth vs. 6mths). We are lowering our FY12 EPS est to $1.00 from $1.08 to reflect the FYQ1’12 results and also lower non-box sales, product sales margin and daily win/unit margin for the remainder of FY2012. We now est FY13 EPS of $1.27, up from $1.25. We value IGT on avg. ’12 and ’13 EPS, which is now $1.14, down from $1.17 and we apply a 15x multiple, which results a $17 PT."
For an analyst ratings summary and ratings history on International Game Tech click here. For more ratings news on International Game Tech click here.
Shares of International Game Tech closed at $15.87 yesterday.
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