In its fiscal first-quarter results IGT posted earnings of 25 cents a share and revenue of $541.2 million. Analysts surveyed by Thomson Reuters estimated earnings of 30 cents a share and revenue of $554.6 million in the quarter ending Dec. 31.
In addition to missing analyst estimates, the company said it expects fiscal 2014 earnings to come in at the low end of its guidance range of between $1.28 and $1.38 a share. Analysts are expecting earnings of $1.29 a share for the year.
Following the results, IGT was downgraded by Sterne Agee, getting downgraded to "neutral" from "buy," with a price target of $18.
TheStreet Ratings team rates INTL GAME TECHNOLOGY as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTL GAME TECHNOLOGY (IGT) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: