Why Is International Game Technology Stock Falling Today?
Portfolio Pulse from Anusuya Lahiri
International Game Technology PLC (NYSE:IGT) reported Q4 fiscal 2023 revenue of $1.13 billion, a 3% increase Y/Y, surpassing consensus estimates of $1.11 billion. Adjusted EPS was $0.56, beating the consensus of $0.41. Revenue from Global Lottery rose 7% Y/Y, while PlayDigital fell 10%. Adjusted EBITDA increased 9% Y/Y to $454 million. The company declared a quarterly dividend of $0.20 per share. CEO Vince Sadusky announced plans to split the business into separate lottery and gaming companies. IGT forecasts fiscal 2024 revenue between $4.30 billion and $4.40 billion, with shares falling 4.59% to $24.00.
March 12, 2024 | 2:23 pm
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IGT reported a 3% Y/Y revenue growth in Q4 fiscal 2023, beating consensus estimates, and announced a quarterly dividend of $0.20 per share. The company plans to split into separate lottery and gaming entities.
Despite beating revenue and EPS estimates for Q4 fiscal 2023, IGT's stock price fell by 4.59% due to the announcement of its business split and a Q1 revenue forecast below consensus. The negative price action suggests market concerns over the split and the lower-than-expected revenue forecast, impacting investor sentiment in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100