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Light & Wonder's (LNW) Q4 Earnings Miss, Revenues Up Y/Y
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Light & Wonder, Inc. (LNW - Free Report) reported mixed fourth-quarter 2023 results, wherein the top line beat the Zacks Consensus Estimate but the bottom line missed the same. The Las Vegas-based cross-platform games and entertainment company reported higher revenues year over year, backed by rapid sales growth across all segments.
Bottom Line
Net income from continuing operations increased to $67 million or 73 cents per share from $21 million or 12 cents per share reported in the year-ago quarter, which missed the Zacks Consensus Estimate by 3 cents. Higher revenues primarily contributed to the year-over-year growth.
For 2023, the company recorded a net income of $180 million or $1.75 per share from continuing operations against a net loss of $176 million or a loss of $2.09 per share a year ago.
Light & Wonder, Inc. Price, Consensus and EPS Surprise
Total revenues in fourth-quarter 2023 rose to $770 million from $682 million in the prior-year quarter, backed by healthy growth in all business segments. The top line beat the consensus estimate of $753 million. Services revenues increased to $515 million year over year from $466 million, while that from Products grew 18% to $255 million from $216 million in the prior-year quarter.
Gaming revenues soared 13% year over year to $496 million from $438 million in the year-ago quarter. 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 witnessed a solid 12% increase year over year to $204 million, primarily driven by the core social casino business and the acquisition of the privately held mobile and social game company Come2Play. Record net sales in this segment broke the quarterly revenue record for the sixth consecutive quarter.
iGaming revenues increased to $70 million from $62 million in the prior-year quarter. Healthy traction in the United States and international markets boosted net sales in this segment.
In 2023, revenues were $2.9 billion compared with $2.5 billion in 2022.
Other Details
Non-GAAP consolidated AEBITDA was $302 million, up 14% year over year, driven by growth in the Gaming business. AEBITDA margin was 39%, on par with the year-ago quarter’s figure.
Cash Flow & Liquidity
For 2023, the company registered a cash flow of $590 million in operating activities against a cash utilization of $381 million a year ago. As of Dec 31, 2023, it had $425 million in cash and cash equivalents with $3.85 billion of long-term debt compared with respective figures of $914 million and $3.87 billion in 2022.
NVIDIA Corporation (NVDA - Free Report) , currently sporting a Zacks Rank #1, delivered a trailing four-quarter average earnings surprise of 20.18%. In the last reported quarter, it delivered an earnings surprise of 13.41%.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
InterDigital, Inc. (IDCC - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 170.50%. In the last reported quarter, it delivered an earnings surprise of 16.53%.
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has delivered an earnings surprise of 13.28%, on average, in the trailing four quarters.
The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. It is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
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Light & Wonder's (LNW) Q4 Earnings Miss, Revenues Up Y/Y
Light & Wonder, Inc. (LNW - Free Report) reported mixed fourth-quarter 2023 results, wherein the top line beat the Zacks Consensus Estimate but the bottom line missed the same. The Las Vegas-based cross-platform games and entertainment company reported higher revenues year over year, backed by rapid sales growth across all segments.
Bottom Line
Net income from continuing operations increased to $67 million or 73 cents per share from $21 million or 12 cents per share reported in the year-ago quarter, which missed the Zacks Consensus Estimate by 3 cents. Higher revenues primarily contributed to the year-over-year growth.
For 2023, the company recorded a net income of $180 million or $1.75 per share from continuing operations against a net loss of $176 million or a loss of $2.09 per share a year ago.
Light & Wonder, Inc. Price, Consensus and EPS Surprise
Light & Wonder, Inc. price-consensus-eps-surprise-chart | Light & Wonder, Inc. Quote
Revenues
Total revenues in fourth-quarter 2023 rose to $770 million from $682 million in the prior-year quarter, backed by healthy growth in all business segments. The top line beat the consensus estimate of $753 million. Services revenues increased to $515 million year over year from $466 million, while that from Products grew 18% to $255 million from $216 million in the prior-year quarter.
Gaming revenues soared 13% year over year to $496 million from $438 million in the year-ago quarter. 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 witnessed a solid 12% increase year over year to $204 million, primarily driven by the core social casino business and the acquisition of the privately held mobile and social game company Come2Play. Record net sales in this segment broke the quarterly revenue record for the sixth consecutive quarter.
iGaming revenues increased to $70 million from $62 million in the prior-year quarter. Healthy traction in the United States and international markets boosted net sales in this segment.
In 2023, revenues were $2.9 billion compared with $2.5 billion in 2022.
Other Details
Non-GAAP consolidated AEBITDA was $302 million, up 14% year over year, driven by growth in the Gaming business. AEBITDA margin was 39%, on par with the year-ago quarter’s figure.
Cash Flow & Liquidity
For 2023, the company registered a cash flow of $590 million in operating activities against a cash utilization of $381 million a year ago. As of Dec 31, 2023, it had $425 million in cash and cash equivalents with $3.85 billion of long-term debt compared with respective figures of $914 million and $3.87 billion in 2022.
Zacks Rank & Other Stocks to Consider
Light and Wonder currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corporation (NVDA - Free Report) , currently sporting a Zacks Rank #1, delivered a trailing four-quarter average earnings surprise of 20.18%. In the last reported quarter, it delivered an earnings surprise of 13.41%.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
InterDigital, Inc. (IDCC - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 170.50%. In the last reported quarter, it delivered an earnings surprise of 16.53%.
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has delivered an earnings surprise of 13.28%, on average, in the trailing four quarters.
The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. It is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.