Cost grows faster than revenue in second quarter for IGT

Apr 30, 2012 7:52 PM

Costs grew faster than revenues during the second fiscal quarter for International Game Technology (IGT) resulting in less income than the earnings in the comparable quarter of 2011.

The company said revenues increased 13 percent to $541.2 million but that net income fell to $61.9 million or $0.21 per share from last year’s $69.6 million or $0.23 per share.

However, when acquisitions-related costs and a distributor settlement were excluded, the company’s earnings were $0.27 per share.

Earnings forecast for the full-year was raised to a range of $0.98 to $1.04 per share from the previous $0.93 to $1.03.

Commenting on the experience, CEO Patti Hart said in a statement, “As expected, our financial results are strengthening as we move through the fiscal year. Every aspect of our business is providing a meaningful contribution to our strong financial performance.”

Following the report, Robin Farley, chief gaming analyst at UBS Investment Research, reiterated her “buy” rating on the company’s stock. Her 12-month price target was given as $19 per share.