Scientific Games Corp Second Quarter Earnings Sneak Peek

Scientific Games Corp (NASDAQ:SGMS) will unveil its latest earnings on Monday, August 6, 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 analyst estimate is for net income of 12 cents per share, a rise of 50% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 13 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 12 cents during the last month. For the year, analysts are projecting profit of 39 cents per share, a rise of 1850% from last year.

Past Earnings Performance: The company is hoping to beat estimates after missing the mark for two straight quarters. Last quarter, it reported net income of 4 cents per share against an estimate of profit of 5 cents per share. The quarter before that, it missed forecasts by 13 cents.

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A Look Back: In the first quarter, the company swung to a profit of $1.8 million (2 cents a share) from a loss of $6.9 million (8 cents) a year earlier, but missed analyst estimates. Revenue rose 19.3% to $234.6 million from $196.7 million.

Stock Price Performance: Between May 4, 2012 and July 31, 2012, the stock price fell $1.10 (-11.5%), from $9.56 to $8.46. It saw one of its worst periods between April 27, 2012 and May 9, 2012 when shares fell for nine straight days, dropping 17.4% (-$1.92) over that span.

Wall St. Revenue Expectations: On average, analysts predict $245.4 million in revenue this quarter, a rise of 11.4% from the year-ago quarter. Analysts are forecasting total revenue of $966.3 million for the year, a rise of 10% from last year’s revenue of $878.7 million.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 0.8% in the third quarter of the last fiscal year and 12.7% in the fourth quarter of the last fiscal year before climbing again in the first quarter.

The upcoming earnings announcement is a chance for the company to build on positive results from last quarter. The company reported losses in the third quarter of the last fiscal year and the fourth quarter of the last fiscal year, but finished in the black with income of $1.8 million in the first.

Analyst Ratings: With four analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.78 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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

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