Int'l Game Technology Reports 4Q Below Expectations

Jefferies & Co. has published a research report on International Game Technology

after the company reported 4Q results that came in below expectations. In the report, Jefferies writes "After the market close on November 9, IGT reported adjusted 4Q EPS of $0.18, which was below our estimate of $0.21 and consensus of $0.19. The downside relative to our estimates was driven by lower than anticipated gaming operations revenues as well as higher than expected costs related to product sales and gaming operations. Product sales of $228.0M were ahead of our estimate of $209.0M. Domestic shipments of 3,300 were below our 4,000 estimate, while international shipments of 7,700 units were ahead of our 5,500. Gross margin on product sales was 53.0% vs. our estimate of 53.3%, while the gaming operations gross margin was 58.2% compared to our 60.7%. The installed base of 57,000 was below our 58,817." Jefferies maintains its Hold rating and $16 price target. International Game Technology closed yesterday at $16.32.