IGT easily beats analysts’ quarterly earnings forecasts

Thursday, Jan. 18, 2001 | 11:22 a.m.

Slot machine giant International Game Technology of Reno today reported net income of 64 cents per diluted share, easily blowing by analyst expectations for the quarter ending Dec. 30.

The company's net income was up 30 percent, even when compared to a year-ago quarter boosted by 19 cents per share in one-time gains. When the year-ago one-time gains are removed, IGT's earnings rose 113 percent.

Analysts had expected IGT to earn 52 cents per share. This morning, IGT rose $1.62 to $49.31.

IGT revenues rose 46 percent on the quarter to $301.7 million, driven primarily by a 75 percent gain in product sales revenue to $192.4 million. Gaming operations posted a 13 percent increase, rising to a record $109.4 million. Operating income increased 79 percent to $88.7 million.

IGT sold 30,000 machines during the quarter, up from 19,500 in the year ago period, as domestic replacement sales reached a record 9,300 units. IGT attributed its strong sales gains to the popularity of its new video-based slots, particularly "Little Green Men," "Texas Tea" and "Double Diamond 2000."

IGT also reported strong results from its long-struggling Australian subsidiary, which posted an operating profit of $4.4 million for the quarter. International machine sales totaled 15,000 units, up from 11,200 units in the year-ago quarter.

IGT said its record quarter for gaming operations was driven by strong customer demand for its new line of "MegaJackpot" games, which includes Wheel of Fortune, the Addams Family, Video Jeopardy! and I Dream of Jeannie. IGT now has 20,900 participation games installed in casinos, up 1,700 units in the period.