IGT

International Game Technology

TMT, Industrial/Transportation


Presented:03/03/2014
Price:$14.71
Cap:$3.63B
Current Price:$20.36
Cap:$4.11B

Presented

Date03/03/2014
Price$14.71
Market Cap$3.63B
Ent Value$5.24B
P/E Ratio21.87x
Book Value$4.80
Div Yield2.5%
Shares O/S246.70M
Ave Daily Vol5,130,000
Short Int9.56%

Current

Price$20.36
Market Cap$4.11B
International Game Technology, a gaming company, designs, develops, manufactures, and markets casino-style gaming equipment, systems technology, and game content for land-based and online markets worldwide. The company offers casino-style games; casino-style slot machines that determine the game play outcome at the machine; wide area progressive jackpot systems with linked machines across various casinos; and central determination system machines connected to a central server, which determines the game outcome, encompassing video lottery terminals used primarily in government-sponsored applications and electronic or video bingo machines. It also provides systems products, including infrastructure and applications for casino management, customer relationship management (CRM), player management, and server-based gaming. The company’s casino and CRM solutions comprise integrated modules for machine accounting, patron management, cage and table accounting, ticket-in/ticket-out, bonusing, table game automation, payment processing, reporting, and regulatory compliance. Its player management solutions feature customized player messaging, tournament management, and integrated marketing and business intelligence; and server-based solutions. In addition, the company provides online social gaming and real-money gaming products and services, including real-money online casino and mobile gaming systems infrastructure and applications, content licensing, and back office operational support services. Its gaming markets include Europe, the Middle East, Africa, Latin America, the Caribbean, Asia, Australia, New Zealand, and the Pacific. International Game Technology was incorporated in 1980 and is headquartered in Las Vegas, Nevada.

Highlights

The presenter sees shares of slot machine manufacturer IGT as something of a structural short, anticipating that the company’s top line could decline by as much as 35-50% in the next 4-5 years. With declining market share in games both leased and sold, the company could earn less than $1 per share in 2015.

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