Scientific Games Corp. Fourth Quarter Earnings Sneak Peek

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Scientific Games Corp. (NASDAQ:SGMS) will unveil its latest earnings on Tuesday, February 28, 2012. Scientific Games is a supplier of technology-based products, systems and services to gaming markets worldwide.

Scientific Games Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 10 cents per share, a rise of fivefold from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 81.8% versus last year to 6 cents.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported net income of 6 cents per share against a mean estimate of profit of 5 cents, and the quarter before, the company exceeded forecasts by 4 cents with net income of 8 cents versus a mean estimate of profit of 4 cents.

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Wall St. Revenue Expectations: On average, analysts predict $235.4 million in revenue this quarter, a rise of 11% from the year-ago quarter. Analysts are forecasting total revenue of $875 million for the year, a decline of 0.8% from last year’s revenue of $882.5 million.

Analyst Ratings: Analysts are bullish on Scientific Games, as three analysts rate it as a buy, none rate it as a sell and three rate it as a hold.

A Look Back: In the third quarter, the company swung to a loss of $4.1 million (4 cents a share) from a profit of $8.7 million (9 cents) a year earlier, but beat analyst expectations. Revenue rose 0.8% to $222.7 million from $221.1 million.

Key Stats:

A year-over-year revenue increase in the third quarter interrupted a streak of three consecutive quarters of revenue declines. Revenue fell 5.5% in the second quarter, 9.1% in the first quarter and 8.9% in the fourth quarter of the last fiscal year.

Stock Price Performance: Between November 23, 2011 and February 22, 2012, the stock price rose $4.43 (57.1%), from $7.76 to $12.19. The stock price saw one of its best stretches over the last year between April 19, 2011 and April 29, 2011, when shares rose for eight straight days, increasing 19.9% (+$1.75) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine straight days, dropping 10.9% (-$1.05) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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