Dallas, Texas 01/29/2014 (FINANCIALSTRENDS) – The bloodbath continues for International Game Technology (NYSE:IGT) after the company reported below par quarterly results and also lowered down the FY’14 guidance. The investors at the Wall Street do not show any sign of being get over from the gaming company’s weak performance during the quarter. Evidently, the company has already been witnessing sluggish growth during the last few months.
A Look At The Results
The company posted earnings per share of 25 cents, which was below the market consensus of 30 cents per share. The company was able to achieve only 2% increase in its top line and saw gross margins deteriorate to 61% as against that in the previous year. The whole report magnified the weak competitive position of IGT in the market. After the dull quarter, the company’s management has also lowered its guidance for the fiscal year 2014. The company has issued estimate in the range of $1.28-$1.38earnings per share. The company mentioned in its report that the profits might further hurt the expectations if the gaming revenues in some of the vital markets continue to diminish. However, the company tried to pull in some confidence as it announced several plans to restore its profitability and to take cost reduction measure. Citi Investment Research’s analyst Michael Gottsman, projected an optimistic vision as he feels that IGT’s solid cash flow and cost reduction plan can help in its margin recovery.
Gets Negative Revision From Analysts
Despite of this, the gaming company is a collector of negative views lately, as some of the major analysts have downgraded their ranking for it. The latest blow comes from Deutshe Bank, which has now placed a price target of $15 on the stock from the previous $16. On an average, the company’s rating as per the market consensus stands as ‘Hold’ and has a price objective of $17.92