AGS, NeoGames Could Lead Gaming Tech Q3 Earnings Beats
Third-quarter earnings season is intimately underway, and analysts are forecasting impressive reports from gaming engineering firms and twist manufacturers.
Everi Holdings (NYSE:EVRI) got that lump rolling today, reporting earnings per portion of septenary cents on sales of $168.3 million. Wall Street expected earnings of quadruplet cents on revenue of $161.46 million. The Las Vegas-based slot machine maker and fintech provider also forecast full year meshing income of $98 one thousand thousand to $100 meg on sales of $645 gazillion to $653 million.
Analysts also expect sturdy Sep billet reports from PlayAGS (NYSE:AGS), iLottery provider NeoGames (NASDAQ:NGMS), and Scientific Games (NASDAQ:SGMS).
We are forecasting Q3 earnings beats for AGS, SGMS, EVRI (pre-released), & NGMS. Continued robust consumer trends, clear of small sequential wallop from Delta variant and weather, should assure upside to Street gaming ops estimates,” said Stifel psychoanalyst Jeffrey Stantial in a note of hand to clients.
PlayAGS is slated to describe results for the July through Sep period on Thursday. Scientific Games and NeoGames step into the earnings confessional on Nov. 9 and Nov. 11, respectively.
Momentum for Gaming Tech Equities
Enthusiasm for gaming tech shares is building, as investors appear for other shipway to swordplay the gaming industry’s recovery beyond traditional cassino operators. For example, shares of PlayAGS are up 18.65 percent o'er simply the past tense week. The inventory is higher past 5.7 percent today on intensity that’s more than quadruple the day-after-day average.
AGS derives the volume of its revenue from regional and tribal casinos, and Wall Street widely expects the society to deliver a 6th serial earnings scramble tomorrow. It’s expected AGS’ third-quarter installation home should step-up well-nigh 300 units from the 2nd quarter, while notching a win per unit increase of 20 percent from the July through and through Sept period inwards 2019.
“We trust sequential advance inwards purchasing doings likely reflects operator optimism amidst a continued salubrious consumer (exemplified by ramping operator takings of capital) joined with a growing hold for the gambling casino trading floor as the turn a profit hub,” adds Stantial.
The analyst says management teams from gaming tech companies are potential to remark positively about fourth-quarter trends, but profile beyond could live limited.
Loving Lottery
Stantial analysts also sees prescribed implications for drawing companies such as NeoGames and International Game Technology (NYSE:IGT).
“We opine lottery will also be an underappreciated helper of ongoing strength inward the consumer,” said the analyst.
He says overall US drawing ticket sales likely jumped 8 percent in the thirdly quarter from the same geological period inwards 2019, with inst fine sales increasing quatern percent.
He boosts his Sept canton revenue projection on NeoGames by close to $1 million, piece estimating an earnings before interest, taxes, wear and tear and amortization (EBITDA) work over of two percent.