Monday, November 15, 2010

IGT Needs A Visit From Lady Luck

Who knows how many fortunes can be attributed to International Game Technology (NYSE:IGT). Not only has IGT produced thousands of jackpot winners from its slot machines and progressive jackpot systems at casinos around the world, but IGT stock had two notable runs as a classic growth stock. IGT's stock market success came as a wave of casino-building and strong market share fueled an impressive earnings run. 

The last few years have not been so kind, though, as lady luck has moved on to favor rivals WMS (NYSE:WMS) and Bally Technologies (NYSE:BYI). Is IGT a rebound in the making or is it destined to spend its days recounting past glories?

A Quarter Lacking Encouragement 

Nothing in the company's fiscal fourth quarter report jumps out as a sign of imminent recovery. Revenue was down 3%, as both the product and gaming segments struggled. Product revenue dropped 1% on a 3% decline in shipments, with international sales growth helping to mitigate the damage of ongoing declines in the North American business. Gaming revenue was down even more (5%), as the installed base dropped 7% and customers migrated to lower-end machines. (For related reading, see Casino Stats: Why Gamblers Rarely Win.)  

Please follow this link for the full article:
http://stocks.investopedia.com/stock-analysis/2010/IGT-Needs-A-Visit-From-Lady-Luck-IGT-WMS-BYI-MGM-LVS-PENN1115.aspx

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