{"id":373,"date":"2024-07-23T20:19:50","date_gmt":"2024-07-23T20:19:50","guid":{"rendered":"http:\/\/buckinghamshire-removals.co.uk\/?p=373"},"modified":"2024-08-28T10:57:49","modified_gmt":"2024-08-28T10:57:49","slug":"gaming-tech-earnings-outlook-solid-trends-encouraging-ma-signs-says-analyst","status":"publish","type":"post","link":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/2024\/07\/23\/gaming-tech-earnings-outlook-solid-trends-encouraging-ma-signs-says-analyst\/","title":{"rendered":"Gaming Tech Earnings Outlook: Solid Trends, Encouraging M&A Signs, Says Analyst"},"content":{"rendered":"

Second-quarter earnings season is rolling along and gaming technology companies will soon take their turns in the earnings confessional. The trends are expected to be solid though not spectacular.<\/p>\n

\"IGT\"
A bank of Wheel of Fortune slot machines. An analyst sees a mixed Q2 earnings season ahead for gaming tech companies. (Image: TheStreet.com<\/em>)<\/figcaption><\/figure>\n

In a note to clients previewing upcoming reports from gaming device manufacturers, Stifel analyst Jeffrey Stantial said Light & Wonder (NASDAQ: LNW) and PlayAGS (NYSE: AGS) are likely to beat estimates for the June quarter while International Game Technology (NYSE: IGT) should meet Wall Street forecasts. Everi (NYSE: EVRI) could miss estimates. IGT is merging its global gaming and PlayDigital units with Everi in a $6.2 billion deal<\/a> announced in February. That should clear up the IGT investment thesis, putting more focus on the company\u2019s highly profitable lottery segment.<\/p>\n

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For IGT, our proprietary lottery sales tracker shows still muted ‘core’ sales, though content phasing & a potential Mega Millions price adjustment should bolster growth beginning in 2H24,\u201d wrote Stantial.<\/p>\n<\/blockquote>\n

The analyst rates IGT a \u201cbuy\u201d though he noted second-quarter sales of lottery tickets and scratchers likely trended lower.<\/p>\n

\u201cWe believe soft core lottery trends mostly reflects well-discussed jackpot fatigue, though ongoing softness in low income consumer spend and implications from persistent inflation & higher gas prices bear watching,\u201d said the analyst. \u201cBased on our analysis of weekly Powerball & Mega Millions sales data, we estimate sales of multi-state jackpot games were inline year-over-year.\u201d<\/p>\n

Attractive Valuations Available Among Gaming Tech Stocks<\/h2>\n

Shares of slot machine manufacturers are mixed this year, but there are some standouts. For example, Light & Wonder is up 28.71% since the start of 2024.<\/p>\n

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That company — one of the largest in the space — is reducing debt and signaling to investors that it sees value in its shares with a $1 billion buyback plan<\/a> announced last month. Stantial notes that across the slot supplier landscape, valuations are at historically depressed levels.<\/p>\n<\/div>\n

\u201cForward 1-year enterprise value\/earnings before interest, taxes, depreciation, and amortization (EV\/EBITDA) multiples are -37% to -17% below long-term averages ex-LNNW, on Street estimates that seemingly embed stable casino gross gaming revenue (GGR) and North American slot replacement cycle,\u201d according to the analyst.<\/strong><\/p>\n

Stantial observed that it\u2019s possible slot supplier stocks could benefit from lower interest rates<\/a>, but added stock selection in the group will be paramount going forward.<\/p>\n

Gaming Tech M&A Outlook Subdued<\/h2>\n

There have been signs of elevated consolidation activity in the gaming technology industry this year, namely in the form of the aforementioned IGT\/Everi merger and Brightstar Capital Partners $1.1 billion offer for PlayAGS, which has been opposed<\/a> by some investors. Last week, Evolution AB announced it\u2019s buying Las Vegas-based Galaxy Gaming for $85 million.<\/p>\n

In aggregate, those deals highlight appetite among buyers for gaming tech firms, but a more competitive headwinds for smaller suppliers and depressed valuations on small-cap consumer cyclical stocks could keep a lid on large-scale mergers and acquisitions activity over the near-term.<\/strong><\/p>\n

\u201cWhile we don’t envision further large-scale M&A for our direct supplier coverage, we believe elevated M&A activity should help provide a floor for valuations while changes in ownership\/execution on integration will need to be closely monitored for market share opportunity\/risk,\u201d concluded Stantial.<\/p>\n

The post Gaming Tech Earnings Outlook: Solid Trends, Encouraging M&A Signs, Says Analyst<\/a> appeared first on Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Second-quarter earnings season is rolling along and gaming technology companies will soon take their turns in the earnings confessional. The trends are expected to be solid though not spectacular. A bank of Wheel of Fortune slot machines. An analyst sees a mixed Q2 earnings season […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/373"}],"collection":[{"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=373"}],"version-history":[{"count":1,"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/373\/revisions"}],"predecessor-version":[{"id":374,"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/373\/revisions\/374"}],"wp:attachment":[{"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=373"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}