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International Game Technology (IGT) Q2 Earnings: What's Up?

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International Game Technology PLC (IGT - Free Report) is scheduled to report second-quarter 2021 results on Aug 3, before market open. In the last reported quarter, the company delivered earnings surprise of 442.9%.

How Are Estimates Faring?

The Zacks Consensus Estimate for second-quarter earnings is pegged at 26 cents, indicating growth of 144.1%, year over year. In the prior-year quarter, the company had reported a loss per share of 59 cents.

For revenues, the consensus mark is pegged at nearly $930.6 million that suggests increase of 46% from the prior-year quarter’s figure.

International Game Technology Price and EPS Surprise

 

International Game Technology Price and EPS Surprise

International Game Technology price-eps-surprise | International Game Technology Quote

 

Let’s analyze the factors that are likely to make an impact this earnings season.

Factors at Play

International Game Technology second-quarter 2021 performance is likely to have benefitted from global lottery growth, progressive recovery in U.S. gaming and OPtiMa cost-savings initiatives. As vaccinations continue to roll out, customers are growing more comfortable with resuming their pre-pandemic activities. During the previous-quarter earnings call, the company stated that it expects global lottery same-store sales growth on a year-over-year basis. Also, it expects sequential improvement in its gaming business.

Moreover, increased focus on iGaming content through a combination of internal development as well as third-party studios is likely to have driven the company’s second-quarter performance. This along with securement of partnership with jurisdictions, where regulatory approval is pending, is likely to have benefitted the company in the to-be-reported quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for International Game Technology this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.

Earnings ESP: International Game Technology has an Earnings ESP of -18.18%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: International Game Technology sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Golden Entertainment, Inc. (GDEN - Free Report) , sports a Zacks Rank #1, and has an Earnings ESP of +5.22%.

Caesars Entertainment, Inc. (CZR - Free Report) , has a Zacks Rank #2, and an Earnings ESP of +160.55%.

MGM Resorts International (MGM - Free Report) , has a Zacks Rank #3, and an Earnings ESP of +51.54%.