NEW YORK (TheStreet) -- Scientific Games (SGMS) surged Tuesday after the company announced it had signed a three-year contract with La Francaise des Jeux, or FDJ, which operates the French National Lottery.
Scientific Games will continue to serve as FDJ's primary supplier of instant games. FDJ is the second-largest instant game lottery in the world. The company supplies much of FDJ's game portfolio, including its top-selling 5 Cash game and its 10 Millionaire game, the only 10 instant game currently on the French market.
The contract began on Jan. 1 and includes an option for the Lottery to extend it for three additional one-year periods.
"FDJ is a valued and long-term partner and this is an extremely positive achievement for Scientific Games," said Executive Vice President and Group Chief Executive of Lottery Jim Kennedy in a statement. "It confirms our position as the number one instant game supplier for FDJ."
The stock was up 11.07% to $12.64 at 11:21 a.m. on Tuesday. Nearly 1.3 million shares had changed hands, which beat the average volume of 1,133,650.
Separately, 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 robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."