Scientific Games Falls As CEO Plans To Retire

NEW YORK (AP) — The planned retirement of CEO Joseph Wright appeared to outweigh Scientific Games Corp.'s third-quarter profit decline, with the stock tumbling Tuesday as investors tried to absorb the unexpected management change.

Shares of Scientific Games shed $4.28, or 24 percent, to $13.42 in morning trading.

Late Monday, the instant ticket and gaming equipment supplier said Wright plans to retire at the end of the year, but will continue to serve on its board. Wright will be succeeded by President and Chief Operating Officer Michael R. Chambrello, who will also serve as a director.

"We were surprised by Scientific Games' senior management changes, especially given the significant progress the company has made towards refocusing on cash flow and reducing expenses," Goldman Sachs analyst Betsy Gorton wrote in a note to clients.

She reaffirmed a "Neutral" rating and $17 price target.

Robert Evans of Craig Hallum Capital said he was pleased with the job Wright had been doing and was also surprised by the announced retirement, but didn't expect there to be transition issues.