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Light & Wonder (LNW) Q4 Earnings Miss, Revenues Top Estimates
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Light & Wonder, Inc. (LNW - Free Report) reported mixed fourth-quarter 2023 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. Revenues surpassed the consensus estimate for the ninth straight quarter, whereas earnings missed it after beating in the preceding two quarters.
Both the top and bottom lines increased on a year-over-year basis. The company benefited from robust gaming revenues.
Earnings
LNW reported adjusted earnings per share of 73 cents, missing the Zacks Consensus Estimate of 76 cents. Net income amounted to $67 million, showing a significant increase from $21 million in the previous year. The uptick was largely attributed to elevated revenues and operating income.
Revenues
Total revenues in the fourth quarter of 2023 came in at $770 million, up 13% year over year, propelled by growth in all business verticals. The top line beat the consensus estimate of $753 million. Services revenues increased to $515 million from $466 million a year ago. Product sales were $255 million, up from $216 million in the prior-year quarter.
Gaming revenues were $496 million, up 13% year over year, driven by 31% sales growth of gaming machines. Revenues from SciPlay rose to $204 million from $182 million in the year-ago quarter.
Light & Wonder, Inc. Price, Consensus and EPS Surprise
Non-GAAP consolidated AEBITDA was $302 million compared with $265 million in the prior-year quarter, with improvement in all business verticals. AEBITDA margin came in at 39%, flat year over year.
Cash Flow & Liquidity
In 2023, the company generated $590 million of cash from operating activities against $381 million used in the year-ago period. As of Dec 31, 2023, it had $425 million in cash and cash equivalents with $3,874 million of long-term debt.
Light & Wonder currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are presented below.
Trip.com Group Limited (TCOM - Free Report) currently sports a Zacks Rank #1 (Strong Buy). TCOM has a trailing four-quarter earnings surprise of 199.4%, on average. Shares of TCOM have increased 17.5% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TCOM’s 2024 sales and EPS indicates a rise of 17.7% and 18%, respectively, from the year-ago levels.
H World Group Limited (HTHT - Free Report) currently carries a Zacks Rank of 2. It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has fallen 24.8% in the past year.
The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.2% and 7.1%, respectively, from the year-earlier actuals.
Playa Hotels & Resorts N.V. (PLYA - Free Report) carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 346.7%, on average. The stock has risen 18.6% in the past six months.
The Zacks Consensus Estimate for PLYA’s 2024 sales indicates a rise of 0.7% from the prior-year levels.
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Light & Wonder (LNW) Q4 Earnings Miss, Revenues Top Estimates
Light & Wonder, Inc. (LNW - Free Report) reported mixed fourth-quarter 2023 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. Revenues surpassed the consensus estimate for the ninth straight quarter, whereas earnings missed it after beating in the preceding two quarters.
Both the top and bottom lines increased on a year-over-year basis. The company benefited from robust gaming revenues.
Earnings
LNW reported adjusted earnings per share of 73 cents, missing the Zacks Consensus Estimate of 76 cents. Net income amounted to $67 million, showing a significant increase from $21 million in the previous year. The uptick was largely attributed to elevated revenues and operating income.
Revenues
Total revenues in the fourth quarter of 2023 came in at $770 million, up 13% year over year, propelled by growth in all business verticals. The top line beat the consensus estimate of $753 million. Services revenues increased to $515 million from $466 million a year ago. Product sales were $255 million, up from $216 million in the prior-year quarter.
Gaming revenues were $496 million, up 13% year over year, driven by 31% sales growth of gaming machines. Revenues from SciPlay rose to $204 million from $182 million in the year-ago quarter.
Light & Wonder, Inc. Price, Consensus and EPS Surprise
Light & Wonder, Inc. price-consensus-eps-surprise-chart | Light & Wonder, Inc. Quote
Other Details
Non-GAAP consolidated AEBITDA was $302 million compared with $265 million in the prior-year quarter, with improvement in all business verticals. AEBITDA margin came in at 39%, flat year over year.
Cash Flow & Liquidity
In 2023, the company generated $590 million of cash from operating activities against $381 million used in the year-ago period. As of Dec 31, 2023, it had $425 million in cash and cash equivalents with $3,874 million of long-term debt.
Light & Wonder currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are presented below.
Trip.com Group Limited (TCOM - Free Report) currently sports a Zacks Rank #1 (Strong Buy). TCOM has a trailing four-quarter earnings surprise of 199.4%, on average. Shares of TCOM have increased 17.5% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TCOM’s 2024 sales and EPS indicates a rise of 17.7% and 18%, respectively, from the year-ago levels.
H World Group Limited (HTHT - Free Report) currently carries a Zacks Rank of 2. It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has fallen 24.8% in the past year.
The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.2% and 7.1%, respectively, from the year-earlier actuals.
Playa Hotels & Resorts N.V. (PLYA - Free Report) carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 346.7%, on average. The stock has risen 18.6% in the past six months.
The Zacks Consensus Estimate for PLYA’s 2024 sales indicates a rise of 0.7% from the prior-year levels.