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Light & Wonder (LNW) Q1 Earnings Top on Solid Revenue Growth
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Light & Wonder, Inc. (LNW - Free Report) reported strong first-quarter 2024 results, wherein both the top and bottom lines beat the respective Zacks Consensus Estimate. The Las Vegas-based cross-platform games and entertainment company reported double-digit revenue growth year over year in each of the segments for six consecutive quarters, which exemplified its portfolio strength and resilient business model.
Bottom Line
Net income for the reported quarter increased to $82 million or 88 cents per share from $22 million or 23 cents per share a year ago, primarily driven by top-line growth. Quarterly earnings comprehensively beat the Zacks Consensus Estimate by 23 cents.
Light & Wonder, Inc. Price, Consensus and EPS Surprise
Total revenues for first-quarter 2024 rose to $756 million from $670 million in the prior-year quarter, backed by healthy growth in all business segments. The top line beat the consensus estimate of $732 million. This is the 12th consecutive quarter of consolidated revenue growth for the company. While Services revenues increased to $517 million from $477 million, that from Products grew 23.8% to $239 million.
Gaming revenues soared 14% year over year to $476 million as solid growth in Gaming machine sales and positive demand trends for Gaming operations, systems and tables supported the top-line improvement from this segment.
Revenues from SciPlay were record high, increasing 11% year over year to $206 million, primarily driven by the core social casino business and the acquisition of the privately held mobile and social game company Come2Play.
iGaming revenues increased 14% to a record high tally of $74 million. Healthy traction in the United States and international markets boosted net sales in this segment.
Other Details
Non-GAAP consolidated AEBITDA was $281 million, up 12.8% year over year, driven by growth in the Gaming business. AEBITDA margin was 37%, on par with the year-ago quarter’s figure.
Cash Flow & Liquidity
The company generated a cash flow of $171 million from operating activities in the first quarter. As of Mar 31, 2023, it had $450 million in cash and cash equivalents with $3.85 billion of long-term debt. The company repurchased approximately 0.2 million shares during the quarter for about $25 million. Since the initiation of the program, Light & Wonder returned $600 million of capital to shareholders through the repurchase of approximately 9.7 million shares, representing 80% of the total share buyback authorization.
Zacks Rank
Light & Wonder currently has a Zacks Rank #2 (Buy).
Sohu.com Limited (SOHU - Free Report) is scheduled to release first-quarter 2024 earnings on May 20. The Zacks Consensus Estimate for Sohu is pegged at a loss of 22 cents per share.
Keysight Technologies, Inc. (KEYS - Free Report) is set to release second-quarter fiscal 2024 earnings on May 20. The Zacks Consensus Estimate for earnings is pegged at $1.38 per share, implying a decline of 34.9% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 4.1%. KEYS delivered an average earnings surprise of 6.4% in the last four reported quarters.
Workday, Inc. (WDAY - Free Report) is slated to release first-quarter fiscal 2025 earnings on May 23. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, indicating growth of 19.8% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 22.7%. WDAY delivered an average earnings surprise of 12.7% in the last four reported quarters.
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Light & Wonder (LNW) Q1 Earnings Top on Solid Revenue Growth
Light & Wonder, Inc. (LNW - Free Report) reported strong first-quarter 2024 results, wherein both the top and bottom lines beat the respective Zacks Consensus Estimate. The Las Vegas-based cross-platform games and entertainment company reported double-digit revenue growth year over year in each of the segments for six consecutive quarters, which exemplified its portfolio strength and resilient business model.
Bottom Line
Net income for the reported quarter increased to $82 million or 88 cents per share from $22 million or 23 cents per share a year ago, primarily driven by top-line growth. Quarterly earnings comprehensively beat the Zacks Consensus Estimate by 23 cents.
Light & Wonder, Inc. Price, Consensus and EPS Surprise
Light & Wonder, Inc. price-consensus-eps-surprise-chart | Light & Wonder, Inc. Quote
Revenues
Total revenues for first-quarter 2024 rose to $756 million from $670 million in the prior-year quarter, backed by healthy growth in all business segments. The top line beat the consensus estimate of $732 million. This is the 12th consecutive quarter of consolidated revenue growth for the company. While Services revenues increased to $517 million from $477 million, that from Products grew 23.8% to $239 million.
Gaming revenues soared 14% year over year to $476 million as solid growth in Gaming machine sales and positive demand trends for Gaming operations, systems and tables supported the top-line improvement from this segment.
Revenues from SciPlay were record high, increasing 11% year over year to $206 million, primarily driven by the core social casino business and the acquisition of the privately held mobile and social game company Come2Play.
iGaming revenues increased 14% to a record high tally of $74 million. Healthy traction in the United States and international markets boosted net sales in this segment.
Other Details
Non-GAAP consolidated AEBITDA was $281 million, up 12.8% year over year, driven by growth in the Gaming business. AEBITDA margin was 37%, on par with the year-ago quarter’s figure.
Cash Flow & Liquidity
The company generated a cash flow of $171 million from operating activities in the first quarter. As of Mar 31, 2023, it had $450 million in cash and cash equivalents with $3.85 billion of long-term debt. The company repurchased approximately 0.2 million shares during the quarter for about $25 million. Since the initiation of the program, Light & Wonder returned $600 million of capital to shareholders through the repurchase of approximately 9.7 million shares, representing 80% of the total share buyback authorization.
Zacks Rank
Light & Wonder currently has a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Sohu.com Limited (SOHU - Free Report) is scheduled to release first-quarter 2024 earnings on May 20. The Zacks Consensus Estimate for Sohu is pegged at a loss of 22 cents per share.
Keysight Technologies, Inc. (KEYS - Free Report) is set to release second-quarter fiscal 2024 earnings on May 20. The Zacks Consensus Estimate for earnings is pegged at $1.38 per share, implying a decline of 34.9% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 4.1%. KEYS delivered an average earnings surprise of 6.4% in the last four reported quarters.
Workday, Inc. (WDAY - Free Report) is slated to release first-quarter fiscal 2025 earnings on May 23. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, indicating growth of 19.8% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 22.7%. WDAY delivered an average earnings surprise of 12.7% in the last four reported quarters.