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Light & Wonder (LNW) Q2 Earnings Beat on Solid Revenues
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Light & Wonder, Inc. (LNW - Free Report) reported solid second-quarter 2023 results, with the bottom line and the top line beating the respective Zacks Consensus Estimate. The Las Vegas-based cross-platform games and entertainment company reported higher revenues year over year, driven by record net sales of SciPlay and iGaming segments.
Bottom Line
Net loss in the reported quarter was $1 million or a loss of a penny per share against a net income of $3,291 million or $34.61 per share in the year-ago quarter. Despite top-line growth, the significant decline was primarily attributable to income from discontinued operations in second-quarter 2022. Non-GAAP net income was $1.02 per share, which beat the Zacks Consensus Estimate by 69 cents.
Light & Wonder, Inc. Price, Consensus and EPS Surprise
Total revenues in the second quarter of 2023 rose to $731 million from $610 million in the prior-year quarter, propelled by growth in all business verticals. The top line beat the consensus estimate of $674 million. Services revenues increased to $496 million year over year from $445 million, while product sales were $235 million, up from $165 million in the prior-year quarter.
Gaming revenues were $471 million, up 21% year over year, driven by 41% sales growth of gaming machines, and healthy demand trends in gaming operations and gaming systems. Revenues from SciPlay surged to $190 million from $160 million in the year-ago quarter. The 19% year-over-year growth was mainly propelled by the core social casino business.
The average revenue per daily active user increased to a record high tally of 93 cents, up 26% year over year. Greater engagement, monetization for players enhanced the top line from this segment. iGaming revenues increased to $70 million, up 17% from the prior-year quarter, driven by a 32% improvement in the U.S. market.
Other Details
Non-GAAP consolidated AEBITDA was $281 million compared with $212 million in the prior-year quarter with improvement in all business verticals. AEBITDA margin rose to 38% from 35% reported in the year-ago quarter.
Cash Flow & Liquidity
For the first six months of 2023, the company generated $219 million of cash from operating activities compared with $13 million in the year-ago period. As of Jun 30, 2023, it had $909 million in cash and cash equivalents with $3,863 million of long-term debt.
Other Key Picks
Light & Wonder currently carries a Zacks Rank #2 (Buy).
Operating as one of the most interconnected Tier 1 networks in the world, Cogent provides efficient on-network and off-network connectivity solutions to various Enterprise segments, including financial companies, educational institutions and law firms at affordable costs. Cogent also offers state-of-the-art colocation data center services that provide incessant power supply and backup generators, making it ideal for disaster recovery and data backup.
Akamai Technologies, Inc. (AKAM - Free Report) , carrying a Zacks Rank #2, delivered an earnings surprise of 4.9%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 10%.
Akamai is a global provider of content delivery network and cloud infrastructure services. The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video & audio, business applications, etc. Akamai’s offerings are intended to reduce the impact of traffic congestion, bandwidth constraints and capacity limitations on customers.
T-Mobile US, Inc. (TMUS - Free Report) , carrying a Zacks Rank #2, delivered an earnings surprise of 8.8% in the last reported quarter. It has a VGM Score of B.
Headquartered in Bellevue, WA, T-Mobile is a national wireless service provider. The company offers its services under the T-Mobile, Metro by T-Mobile and Sprint brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.
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Light & Wonder (LNW) Q2 Earnings Beat on Solid Revenues
Light & Wonder, Inc. (LNW - Free Report) reported solid second-quarter 2023 results, with the bottom line and the top line beating the respective Zacks Consensus Estimate. The Las Vegas-based cross-platform games and entertainment company reported higher revenues year over year, driven by record net sales of SciPlay and iGaming segments.
Bottom Line
Net loss in the reported quarter was $1 million or a loss of a penny per share against a net income of $3,291 million or $34.61 per share in the year-ago quarter. Despite top-line growth, the significant decline was primarily attributable to income from discontinued operations in second-quarter 2022. Non-GAAP net income was $1.02 per share, which beat the Zacks Consensus Estimate by 69 cents.
Light & Wonder, Inc. Price, Consensus and EPS Surprise
Light & Wonder, Inc. price-consensus-eps-surprise-chart | Light & Wonder, Inc. Quote
Revenues
Total revenues in the second quarter of 2023 rose to $731 million from $610 million in the prior-year quarter, propelled by growth in all business verticals. The top line beat the consensus estimate of $674 million. Services revenues increased to $496 million year over year from $445 million, while product sales were $235 million, up from $165 million in the prior-year quarter.
Gaming revenues were $471 million, up 21% year over year, driven by 41% sales growth of gaming machines, and healthy demand trends in gaming operations and gaming systems. Revenues from SciPlay surged to $190 million from $160 million in the year-ago quarter. The 19% year-over-year growth was mainly propelled by the core social casino business.
The average revenue per daily active user increased to a record high tally of 93 cents, up 26% year over year. Greater engagement, monetization for players enhanced the top line from this segment. iGaming revenues increased to $70 million, up 17% from the prior-year quarter, driven by a 32% improvement in the U.S. market.
Other Details
Non-GAAP consolidated AEBITDA was $281 million compared with $212 million in the prior-year quarter with improvement in all business verticals. AEBITDA margin rose to 38% from 35% reported in the year-ago quarter.
Cash Flow & Liquidity
For the first six months of 2023, the company generated $219 million of cash from operating activities compared with $13 million in the year-ago period. As of Jun 30, 2023, it had $909 million in cash and cash equivalents with $3,863 million of long-term debt.
Other Key Picks
Light & Wonder currently carries a Zacks Rank #2 (Buy).
Cogent Communications Holdings, Inc. (CCOI - Free Report) , carrying a Zacks Rank #2, has a VGM Score of B. It delivered an earnings surprise of 18.2% in the last reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Operating as one of the most interconnected Tier 1 networks in the world, Cogent provides efficient on-network and off-network connectivity solutions to various Enterprise segments, including financial companies, educational institutions and law firms at affordable costs. Cogent also offers state-of-the-art colocation data center services that provide incessant power supply and backup generators, making it ideal for disaster recovery and data backup.
Akamai Technologies, Inc. (AKAM - Free Report) , carrying a Zacks Rank #2, delivered an earnings surprise of 4.9%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 10%.
Akamai is a global provider of content delivery network and cloud infrastructure services. The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video & audio, business applications, etc. Akamai’s offerings are intended to reduce the impact of traffic congestion, bandwidth constraints and capacity limitations on customers.
T-Mobile US, Inc. (TMUS - Free Report) , carrying a Zacks Rank #2, delivered an earnings surprise of 8.8% in the last reported quarter. It has a VGM Score of B.
Headquartered in Bellevue, WA, T-Mobile is a national wireless service provider. The company offers its services under the T-Mobile, Metro by T-Mobile and Sprint brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.