Benzinga | Mar 1, 2021 10:02AM EST

International Game Tech Earnings Preview

On Tuesday, March 02, International Game Tech (NYSE:IGT) will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Sell-side analysts expect International Game Tech's EPS to be near $0.05 on sales of $935.02 million. In the same quarter last year, International Game Tech reported earnings per share of $0.31 on revenue of $1.25 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be down 83.87%. Sales would be down 25.38% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.21 -0.70 0.04 0.24EPS Actual 0.26 -0.59 0.08 0.31Revenue Estimate 807.96 M 482.25 M 1.01 B 1.23 BRevenue Actual 982.00 M 637.48 M 940.20 M 1.25 B

Stock Performance

Over the last 52-week period, shares are up 101.24%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. International Game Tech is scheduled to hold the call at 08:00:00 ET and can be accessed here.