Why Scientific Games (SGMS) Is Soaring on Thursday

NEW YORK (TheStreet) -- Scientific Games (SGMS) is soaring on Thursday after beating analysts' expectations on the top line.

By midday, shares have added 19.7% to $16.59. Trading volume of 2.4 million is more than four times its three-month daily average.

The company, supplier of instant lottery games and lottery gaming systems, posted revenue 61.3% higher year over year to $401.9 million in the three months to December. Analysts surveyed by Thomson Reuters had forecast sales of $388.04 million.

Net income of 3 cents a share fell short of estimates by 4 cents.

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TheStreet Ratings team rates SCIENTIFIC GAMES CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate SCIENTIFIC GAMES CORP (SGMS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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