HomeMost PopularInvestingLight & Wonder (LNW) Q1 Earnings Top on Solid Revenue Growth

Light & Wonder (LNW) Q1 Earnings Top on Solid Revenue Growth

Actionable Trade Ideas

always free

Light & Wonder, Inc. LNW reported strong first-quarter 2024 results, wherein both the top and bottom lines beat the respective Zacks Consensus Estimate. The Las Vegas-based cross-platform games and entertainment company reported double-digit revenue growth year over year in each of the segments for six consecutive quarters, which exemplified its portfolio strength and resilient business model.

Bottom Line

Net income for the reported quarter increased to $82 million or 88 cents per share from $22 million or 23 cents per share a year ago, primarily driven by top-line growth. Quarterly earnings comprehensively beat the Zacks Consensus Estimate by 23 cents.

Light & Wonder, Inc. Price, Consensus and EPS Surprise Light & Wonder, Inc. Price, Consensus and EPS Surprise

Light & Wonder, Inc. price-consensus-eps-surprise-chart | Light & Wonder, Inc. Quote

Revenues

Total revenues for first-quarter 2024 rose to $756 million from $670 million in the prior-year quarter, backed by healthy growth in all business segments. The top line beat the consensus estimate of $732 million. This is the 12th consecutive quarter of consolidated revenue growth for the company. While Services revenues increased to $517 million from $477 million, that from Products grew 23.8% to $239 million.

Gaming revenues soared 14% year over year to $476 million as 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 were record high, increasing 11% year over year to $206 million, primarily driven by the core social casino business and the acquisition of the privately held mobile and social game company Come2Play.

iGaming revenues increased 14% to a record high tally of $74 million. Healthy traction in the United States and international markets boosted net sales in this segment.

Other Details

Non-GAAP consolidated AEBITDA was $281 million, up 12.8% year over year, driven by growth in the Gaming business. AEBITDA margin was 37%, on par with the year-ago quarter’s figure.

Cash Flow & Liquidity

The company generated a cash flow of $171 million from operating activities in the first quarter. As of Mar 31, 2023, it had $450 million in cash and cash equivalents with $3.85 billion of long-term debt. The company repurchased approximately 0.2 million shares during the quarter for about $25 million. Since the initiation of the program, Light & Wonder returned $600 million of capital to shareholders through the repurchase of approximately 9.7 million shares, representing 80% of the total share buyback authorization.

Zacks Rank

Light & Wonder currently has a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Sohu.com Limited SOHU is scheduled to release first-quarter 2024 earnings on May 20. The Zacks Consensus Estimate for Sohu is pegged at a loss of 22 cents per share.

Keysight Technologies, Inc. KEYS is set to release second-quarter fiscal 2024 earnings on May 20. The Zacks Consensus Estimate for earnings is pegged at $1.38 per share, implying a decline of 34.9% from the year-ago reported figure.

Keysight has a long-term earnings growth expectation of 4.1%. KEYS delivered an average earnings surprise of 6.4% in the last four reported quarters.

Workday, Inc. WDAY is slated to release first-quarter fiscal 2025 earnings on May 23. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, indicating growth of 19.8% from the year-ago reported figure.

Workday has a long-term earnings growth expectation of 22.7%. WDAY delivered an average earnings surprise of 12.7% in the last four reported quarters.

Zacks Names β€œSingle Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Sohu.com Inc. (SOHU) : Free Stock Analysis Report

Workday, Inc. (WDAY) : Free Stock Analysis Report

Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report

Light & Wonder, Inc. (LNW) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.