International Gaming Technology Rally Already Fading

With shares of International Gaming Technology (NYSE:IGT) trading at around $15.01, is IGT an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

International Gaming Technology beat Q1 EPS and revenue expectations. On an adjusted basis, EPS came in at $0.28 versus an expectation of $0.24. Revenue came in at $530.30 million versus an expectation of $524.40 million. Revenue was also much higher than the $445.50 million for Q1 last year. International Gaming Technology attributed a large part of the revenue gain to interactive and products sales, which offset a decline in gaming operations. Revenue gains also helped boost profit by more than 30 percent.

CEO Patti Heart is looking to build on the company’s momentum by distributing content more broadly and returning capital to shareholders. Guidance for 2013 was also reaffirmed, which is adjusted EPS between $1.20 and $1.30.

Unfortunately, there is no obvious news as to why the stock’s rally faded so quickly today. All we can do is look at some important numbers to get a better idea of the big picture….