IGT 2Q15 earnings beat forecasts

 

International Game Technology beat analysts’ expectations with its first full set of earnings in dollars after merging with Italy’s GTECH.

Q2 adjusted EPS were $0.35, above the Capital IQ  mean for $0.27. On a GAAP basis, it had a loss of $0.59 a share.

Sales were $1.29 billion, up 36 percent from a year ago and 2 percent above the consensus view.

On a pro forma, constant currency basis, consolidated revenue increased 1 percent, reflecting double-digit increases in the North American Lottery and International segments, partially offset by single-digit declines in the Italy and North America Gaming & Interactive segments. During the quarter, the company sold 10,147 gaming machines worldwide and global lottery same-store revenue excluding Italy increased 7 percent.

It set a quarterly cash dividend of $0.20 per ordinary share. The first cash dividend is payable on September 10 to shareholders of record as of the close of business on August 26.

“All in, it was a good quarter for IGT with numbers beating muted expectations, guidance in line with consensus – and the new reporting structure makes the story cleaner going forward,” Wells Fargo analyst Cameron McKnight wrote in a note.

The company expects to realize $230 million in cost synergies by April 2018 from the merger, and is expected to achieve two-thirds of targeted savings on an annualized basis by April 2016.