Adjusted earnings before interest, taxes, depreciation and amortization registered $450 million, up 46% from a year earlier and above the Bloomberg analyst consensus of $309.2 million.
Revenue totaled $1.02 billion in the first quarter, up 8% from a year earlier and more than the analyst consensus of $876 million.
Operating earnings per share totaled 38 cents, swinging from a loss of $1.28.
London-based IGT recently traded at $20.32, up 16%. It has doubled over the past six months amid investor enthusiasm for the gaming industry.
Jefferies analyst David Katz has a buy rating and a $25 price target for the company.
Its earnings beat was “more prominent than that of the industry overall, particularly related to free cash flow,” he wrote in a commentary cited by Bloomberg. He pointed to the “noteworthy” strength in IGT’s lottery segment.
The company’s decreased leverage indicates “progress toward a broader range of capital returns,’’ Katz said.
In other gambling news, TheStreet.com Founder Jim Cramer said last week that Wynn Resorts WYNN is the gambling stock he would buy.
Also last week, DraftKings DKNG got another boost from the analyst community, when Cowen upgraded the stock to outperform from market perform with a $70 price target.
Cowen’s Stephen Glagola made the upgrade due to the company's valuation and the prospect of more states legalizing sports gambling.
The pace of state legalization is "the primary top-line catalyst and share-price driver for DraftKings," he said.