NEW YORK (TheStreet) -- Casino games developer International Game Technology (IGT) is plunging on Wednesday after management cut previously-issued earnings guidance and warned of a workforce reduction.
By midmorning, shares had slid 7.3% to $13.76.
The Las Vegas-based business cut its fiscal 2014 earnings to $1 to $1.10 a share from a previous range of $1.28 to $1.38 a share.
For its second quarter ending March, management expects net income between 17 cents and 19 cents a share.
IGT also said it would reduce its 5,000-strong workforce by 7%, assuming around 350 layoffs, which would provide cost savings of $50 million on an annual run-rate basis.
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TheStreet Ratings team rates INTL GAME TECHNOLOGY as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTL GAME TECHNOLOGY (IGT) 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, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself."