IGT investors see hope despite Q3 decline

Jul 28, 2009 5:07 PM
Earnings by Ray Poirier | With the prospects of both Ohio and Illinois expanding gambling to include slot machines, investors were willing to ignore the declining operating results of International Game Technology (IGT) in favor of seeing better results in subsequent quarters.

Shares of IGT jumped to just under $20 each last week, the highest level they had reached in several months.

Analysts said they were happy to hear that the company’s earnings for the third fiscal quarter had reached $66.3 million or $0.22 per share. The majority of analysts had been looking for earnings of $0.18 per share.

Even revenues of $522.1 million exceeded expectations of $510.7 million.

Related Articles:
IGT says company positioning for rebound
IGT's Kitty Glitter slot machine is Cat's Meow
Phil Satre appointed to IGT's board of directors
Also Check out our Race & Sports Section

The company said its earnings for the period benefited from recent cost reductions.

Last year during the third fiscal quarter the company earned $108.3 million or $0.35 per share.

Patti Hart, the company’s new CEO, said, "Although we continue to face an environment of suppressed demand, we were pleased with continued stability in our gaming operations yields and an uptick in unit sales from the second quarter."

IGT is expected to be exceptionally strong in placing units at facilities that will be authorized in Illinois because of its popular video poker machines.

And on Monday, the company announced it had finalized a deal with MGM MIRAGE Inc. (MGM) to put about 300 of its highly-popular Wheel of Fortune slot machines in its properties.