Revenue Slips at Gtech

Lottery-systems maker Gtech Holdings (GTK Quote - Cramer on GTK - Stock Picks) missed analysts' third-quarter estimates Friday, posting earnings and sales that fell just short of the consensus targets.

The West Greenwich, R.I., company said net income was $48.7 million, or 37 cents a share, compared with $45.9 million, or 35 cents a share, a year ago. Revenue for the third quarter totaled $300.1 million, down 4.9% from $315.6 million last year.

Analysts polled by Thomson Financial had expected the company to post earnings of 38 cents a share on sales of $308.3 million.

For the fourth quarter, Gtech said it expects service revenue growth of 5% to 7% and product sales in the range of $85 million to $95 million. Service revenue makes up the bulk of Gtech's total revenue.

The company forecast a profit of 45 cents to 48 cents a share, falling short of analysts' expectations of 49 cents.

Shares of Gtech were down 19 cents to $31.11 in recent trading.