IGT’s stock climbs after company reports better-than-expected 1st-quarter profit
By APFriday, January 22, 2010
IGT rises on better-than-expected 1Q profit
NEW YORK — Shares of International Game Technology jumped Friday after the gambling machine maker posted a better-than-expected fiscal first-quarter profit.
The Reno, Nev., company earned 25 cents per share for the period ended Dec. 31, surpassing the 20-cents-per-share estimate of analysts surveyed by Thomson Reuters. These estimates normally take out one-time items.
Steven Kent of Goldman Sachs said IGT also topped his profit estimate of 22 cents per share. He was pleased with the company’s cost control efforts and its ability to place more participation games at casinos.
“In the past IGT has done a terrific job offsetting weakness in one business with gains in another and seems to be back in this mode,” he wrote in a note to clients.
UBS’s Robin Farley said investors would welcome the earnings beat, but might be disappointed that IGT played it safe, reaffirming its outlook for a 2010 profit of 77 cents to 87 cents per share. Analysts expect higher earnings of 88 cents per share for the year.
Farley reiterated a “Buy” rating and $23 price target.
IGT’s stock gained 81 cents, or 4 percent, to $21.01 in afternoon trading. The shares have traded in a 52-week range of $6.81 to $23.30.
