International Game Technology's (IGT) fiscal first-quarter profit rose 20% despite a drop in revenue as the company benefited from improved margins and a lift from unusual items.
The gambling-equipment maker's shares were up 3.8% to $20.97 in after-hours trading. The stock is up more than three-quarters over the past year.
In the quarter ended Dec. 31, the company's profit was $73.3 million, or 25 cents a share, up from $61.2 million, or 21 cents a share, a year earlier. The year-ago period included a $17.4 million pretax restructuring charge. Overall, unusual items added 1 cent to the latest quarter's per-share earnings and reduced the year-ago figure by 7 cents.
Revenue fell 14% to $515.7 million, reflecting declines of 11% in gaming operations and 17% in product sales. A shift in revenue recognition added $10.4 million to the quarter's revenue that would have been recognized later under the old standard.
Analysts polled by Thomson Reuters expected earnings of 20 cents a share on revenue of $531 million.
Product shipments fell 42% to 5,500 equivalent units in North America but rose 6.7% to 6,400 internationally.
Gross margins widened to 62% from 52% in gaming operations and to 52% from 50% in product sales.
Source : http://online.wsj.com/article/BT-CO-20100121-715659.html?mod=WSJ_earnings_MIDDLETopHeadlines
The gambling-equipment maker's shares were up 3.8% to $20.97 in after-hours trading. The stock is up more than three-quarters over the past year.
In the quarter ended Dec. 31, the company's profit was $73.3 million, or 25 cents a share, up from $61.2 million, or 21 cents a share, a year earlier. The year-ago period included a $17.4 million pretax restructuring charge. Overall, unusual items added 1 cent to the latest quarter's per-share earnings and reduced the year-ago figure by 7 cents.
Revenue fell 14% to $515.7 million, reflecting declines of 11% in gaming operations and 17% in product sales. A shift in revenue recognition added $10.4 million to the quarter's revenue that would have been recognized later under the old standard.
Analysts polled by Thomson Reuters expected earnings of 20 cents a share on revenue of $531 million.
Product shipments fell 42% to 5,500 equivalent units in North America but rose 6.7% to 6,400 internationally.
Gross margins widened to 62% from 52% in gaming operations and to 52% from 50% in product sales.
Source : http://online.wsj.com/article/BT-CO-20100121-715659.html?mod=WSJ_earnings_MIDDLETopHeadlines
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