NEW YORK (
International Game Technology
is plunging a day after it reported a disappointing outlook.
The slot machine maker raised the low end of its full-year guidance, now expecting to earn 82 cents to 85 cents a share, from a previous range of 77 cents to 85 cents for IGT. But this still falls short of analysts' estimates of 89 cents a share.
During the third quarter, IGT earned $92.1 million, or 31 cents a share, compared with $60.6 million, or 20 cents, in the year-ago period. Analysts expected a profit of 21 cents a share.
IGT revenue fell 5% to $489.7 million from $517.3 million, missing Wall Street's consensus of $502 million. IGT saw weakness in its domestic operations.
IGT is tanking 9.6% to $15.10, and weighing down stocks of other slot machine makers.
is sinking 5.7% to $38.89, while
is losing 5% to $33.22.
"We believe the macro story for the supplier sector is better than the individual at IGT," Sterne Agee analyst David Bain wrote in a note. But Bain reaffirmed his hold rating on the stock, with a positive broader view on gaming expansion opportunities and the likelihood for a slightly improved replacement cycle in 2011.
Regardless, Bain says he still prefers WMS and Bally over IGT.
-- Reported by Jeanine Poggi in New York.
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