DOW JONES NEWSWIRES
International Game Technology (IGT) reported Tuesday its fiscal
third-quarter profit slipped 5.6% from a year-earlier result that
had been bolstered by tax gains, while core earnings rose faster
than expected on higher product sales.
The slot-machine maker also raised its full-year earnings
outlook for the second time, calling for an adjusted profit from
continuing operations of between 89 cents and 93 cents a share, up
from its April forecast of 84 cents to 90 cents.
Shares jumped 4.6% to $18.92 after hours. The stock only had
gained 2.3% this year through Tuesday's close, underperforming the
broader market.
International Game has posted improving core results over the
past year as gambling activity rebounds in the wake of the
recession. A ruling earlier this month from Illinois Supreme Court
cleared the way for more video-gaming machines at bars and
restaurants in the state, further improving the company's growth
prospects.
"Our third quarter results further demonstrate the positive
momentum generated by our new games, platforms and internal process
improvements," Chief Executive Patti Hart said.
The company last month authorized a buyback of up to $500
million in common stock, joining a growing list of companies opting
to reward shareholders by tapping into cash stockpiles.
For the quarter ended June 30, International Game reported a
profit of $86.9 million, or 29 cents a share, down from $92.1
million, or 31 cents a share, a year earlier. Excluding prior-year
tax gains and other items, earnings from continuing operations rose
to 26 cents from 21 cents. Revenue grew 3% to $489 million.
Analysts polled by Thomson Reuters expected a 22-cent per-share
profit on revenue of $487 million.
Revenue from gaming operations--which include machines that the
company places in casinos and shares revenue with the
operator--edged down 0.6%, while product sales of machines that the
company sells outright climbed 7.6%.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com