A virtual meeting concerning International Game Technology (IGT, Financial) has been scheduled for June 11 at 2 p.m. Hosted by Benchmark, this meeting aims to provide investors with an opportunity to gain insights into IGT's performance and future prospects. Benchmark will facilitate discussions to help attendees make informed investment decisions regarding IGT.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for International Game Technology PLC (IGT, Financial) is $19.18 with a high estimate of $25.00 and a low estimate of $15.00. The average target implies an upside of 30.23% from the current price of $14.73. More detailed estimate data can be found on the International Game Technology PLC (IGT) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, International Game Technology PLC's (IGT, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for International Game Technology PLC (IGT, Financial) in one year is $17.43, suggesting a upside of 18.33% from the current price of $14.73. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the International Game Technology PLC (IGT) Summary page.
IGT Key Business Developments
Release Date: May 13, 2025
- Revenue: $583 million in Q1 2025, down from $661 million in the prior year.
- Adjusted EBITDA: $250 million with a 43% margin.
- Cash Conversion Ratio: 67%, delivering $168 million in cash from operations and free cash flow of $92 million.
- Net Debt: Increased by $270 million to $5 billion, with a pro forma net debt leverage of 2.8 times.
- iLottery Sales Growth: Increased by 26% in Q1 2025.
- Same-Store Sales Growth: Global instant ticket and draw games rose nearly 1.5%.
- Normalized Same-Store Sales Growth in Italy: 2% increase.
- Full Year 2025 Revenue Outlook: Approximately $2.55 billion.
- Full Year 2025 Adjusted EBITDA Outlook: $1.1 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- International Game Technology PLC (IGT, Financial) reported $250 million in EBITDA at a 43% margin, highlighting the resilient profit structure of its lottery business.
- iLottery sales increased by 26% in Q1, driven by strong performance across geographies, particularly in the US with significant growth in Kentucky and Georgia.
- The company successfully launched the Mega Millions game at a $5 price point, which is expected to drive increased sales and revenues.
- IGT is expanding its retail touchpoints with initiatives like self-service lottery vending machines and in-lane purchasing, which are expected to generate incremental sales.
- The company maintains a strong financial condition with pro forma net debt leverage below 3 times, and a significant liquidity buffer of $2.2 billion.
Negative Points
- IGT's Q1 revenue of $583 million was down from $661 million in the prior year, primarily due to lower jackpot activity and associated impacts.
- The company revised its full-year 2025 revenue and adjusted EBITDA guidance to the low end of previous ranges due to macroeconomic uncertainties and lower jackpot activity.
- There was a significant impact from the lack of large multi-state jackpots, which are sporadic and cause period-to-period variability in revenue.
- The company is facing challenges from macroeconomic and geopolitical uncertainties, including tariffs and declining consumer confidence.
- IGT's net debt rose by $270 million from the end of December 2024, partly due to foreign currency translation and working capital impacts.
