Gaming Tech Equities Can Ship Extra Upside On Q3 Earnings Beats

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Posted on: November 3, 2021, 12:35h. 

Final up to date on: November 3, 2021, 02:02h.

Third-quarter earnings season is nicely underway, and analysts are forecasting spectacular experiences from gaming expertise corporations and machine producers.

Gaming Tech
Gaming tech equities are hovering as patrons return to casinos, as seen above. Analysts see third-quarter earnings beats coming. (Picture: Wayne Parry/AP)

Everi Holdings (NYSE:EVRI) obtained that ball rolling right now, reporting earnings per share of seven cents on gross sales of $168.3 million. Wall Avenue anticipated earnings of 4 cents on income of $161.46 million. The Las Vegas-based slot machine maker and fintech supplier additionally forecast full yr web earnings of $98 million to $100 million on gross sales of $645 million to $653 million.

Analysts additionally anticipate sturdy September quarter experiences from PlayAGS (NYSE:AGS), iLottery supplier NeoGames (NASDAQ:NGMS), and Scientific Video games (NASDAQ:SGMS).

We’re forecasting Q3 earnings beats for AGS, SGMS, EVRI (pre-released), & NGMS. Continued sturdy client traits, web of modest sequential influence from Delta variant and climate, ought to see upside to Avenue gaming ops estimates,” mentioned Stifel analyst Jeffrey Stantial in a observe to shoppers.

PlayAGS is slated to report outcomes for the July by September interval on Thursday. Scientific Video 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 constructing, as traders search for different methods to play the gaming trade’s restoration past conventional on line casino operators. For instance, shares of PlayAGS are up 18.65 p.c over simply the previous week. The inventory is larger by 5.7 p.c right now on quantity that’s greater than quadruple the day by day common.

AGS derives the majority of its income from regional and tribal casinos, and Wall Avenue extensively expects the corporate to ship a sixth consecutive earnings beat tomorrow. It’s anticipated AGS’ third-quarter set up base ought to improve about 300 items from the second quarter, whereas notching a win per unit improve of 20 p.c from the July by September interval in 2019.

“We imagine sequential enchancment in buying habits probably displays operator optimism amidst a continued wholesome client (exemplified by ramping operator return of capital) coupled with a rising appreciation for the on line casino ground because the revenue hub,” provides Stantial.

The analyst says administration groups from gaming tech corporations are prone to remark positively about fourth-quarter traits, however visibility past could possibly be restricted.

Loving Lottery

Stantial analysts additionally sees optimistic implications for lottery corporations similar to NeoGames and Worldwide Recreation Expertise (NYSE:IGT).

“We expect lottery may even be an underappreciated benefactor of ongoing power within the client,” mentioned the analyst.

He says total US lottery ticket gross sales probably jumped eight p.c within the third quarter from the identical interval in 2019, with prompt ticket gross sales growing 4 p.c.

He boosts his September quarter income projection on NeoGames by roughly $1 million, whereas estimating an earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) beat of two p.c.



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