Scientific Games (SGMS) Stock Is Down Today After Earnings Report
NEW YORK (TheStreet) -- Shares of Scientific Games (SGMS) - Get Report were falling 7.2% to $12.90 on heavy trading volume Thursday despite the lottery gaming systems maker fourth quarter results which beat analysts' estimates for earnings and revenue.
Scientific Games reported a loss of 55 cents a share for the fourth quarter, beating analysts' estimates of a loss of 60 cents a share. Revenue grew 40.8% year over year to $565.8 million for the quarter, above analysts' estimates of $510.72 million.
'With the combination of Scientific Games and Bally, we are focused on becoming the partner of choice for gaming, lottery and interactive customers," President and CEO Gavin Isaacs said, referencing the company's acquisition of Bally Technologies on Nov. 21, 2014. "To this end, we plan to launch an exciting array of new products across our Bally, WMS, ShuffleMaster, Williams, Barcrest and lottery brands throughout the world in 2015."
About 4.2 million shares of Scientific Games were traded by 3:34 p.m. Thursday, above the average trading volume of about 770,000 shares a day.
TheStreet Ratings team rates SCIENTIFIC GAMES CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCIENTIFIC GAMES CORP (SGMS) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk and feeble growth in its earnings per share."
You can view the full analysis from the report here: SGMS Ratings Report