International Game Technology falls on disappointing results
NEW YORK -Shares of International Game Technology fell Thursday as second-quarter earnings missed analysts' expectations by a wide margin.
Earlier in the morning the Reno, Nev.-based gaming equipment maker said its quarterly earnings per share slipped to 22 cents from 38 cents as North American product sales declined and costs and operating expenses increased.
Analysts polled by Thomson Financial expected net income of 34 cents per share.
Goldman Sachs analyst Steven Kent said in a client note that International Game's profit came in significantly below his 34-cents-per-share estimate. He was also unsettled by lower margins and products sales revenue.
Similar to Kent, David Katz of Oppenheimer & Co. said International Game's quarterly results were lower than expected.
"The weak domestic environment during the quarter and increased costs of future jackpot liabilities drove some of the downside, although weakness was broad across the business," he wrote.
International Game Technology's stock slid $2.31, or 6.1 percent, to close at $35.70 Thursday. The stock has traded between $33.57 and $49.41 over the past year.