Scientific Games Corporation (NASDAQ: SGMS)
Shares of Scientific Games Corporation gained $5.13, or 11.15% on Monday, May 14 to close trading at $59.30. The gain came after the Supreme Court scrapped off a 1992 law that prohibited sports betting practice in states where it was not already legal.
The supreme court’s decision to do away with the law, commonly known as the Professional and Amateur Sports Protection Act of 1992, now paves the possibility for states to unleash a race amongst themselves aimed at attracting billions of dollars from the sports betting industry.
In the wake of the decision yesterday, shares of Scientific Games Corp climbed to reach an intraday high of $61.50. Shares of other betting companies, including Stars Group Inc., Boyd Gaming Corp., International Speedway Corp., Caesars Entertainment Corp., Caesars Entertainment Corp., and MGM Resorts International also surged following the ruling.
SGMS Earnings & Outlook
The company reported a loss of $2.24 per share in the first-quarter of 2018. The figure was bigger compared to the $1.14 loss that the company posted in same period last year. Revenues grew 11.9% from the same period in 2017 to $811.8 million for Q1 of 2018.
The revenue figure also surpassed the $778 million consensus prediction that analysts had made. The increase was driven by instant game sales (up 7%) and higher services (up 20.6%).
Gaming segment revenues grew by 0.7% year-over-year to stand at $443 million, and accounted for 54.6% of total revenues. Gaming Machine sales and Gaming operations took a dip of 7.3% and 6.4% respectively.
The results were, however, backed by strong growth in Table Products and Gaming Systems of 24% and 22%, respectively.
This should be a good stock to keep on your watch list for both long term investing and short term day trading.
Scientific Games Corporation Company Profile
Scientific Games Corporation engages in the development of tech-based services and products; and related gaming and lottery content globally. Through its Gaming segment, the company sells electronic table systems, gaming machines, video lottery terminals, table products & table-management systems; conversion game kits, perpetual licenses to table games; and spare parts; casinos, and slots.
It also leases electronic table games, video lottery terminals, game themes, and provides support and installation services, such as ongoing software upgrade and hardware maintenance services for casino management systems.
Through the Lottery segment, the company prints, designs, and markets instant lottery games. It also engages in the supply of player loyalty programs, provision of interactive marketing campaigns and merchandising services, sub-licensing brands for lottery products and provision of lottery-related promotional items.
Additionally, this segment engages in the provision of hardware, software, and lottery-related operations, such as instant ticket validation systems, lottery systems software support and maintenance services, draw systems, keno systems and sports wagering.
Its Interactive segment operates social bingo-based, slot-based, and casino-style games through Android, Facebook, iOS, and a variety of other mobile and desktop platforms. The company provides content via remote game server tech, to mobile platforms and operators of licensed online casinos.
The headquarters of Scientific Games Corporation are located in Las Vegas, NV. The company was founded in 1984. –Reuters