Scientific Games (
is scheduled to release its fourth quarter 2012 results on Mar
11, 2013, after the closing bell. Scientific Games posted a
negative surprise of 214.3% in the third quarter. The company has
posted an average negative surprise of 136.9% over the last four
quarters. Let's see how things are shaping up for the company in
Factors Affecting Growth this Past Quarter
Scientific Games reported dismal third quarter results,
failing to beat the Zacks Consensus Estimate. Loss per share
widened on a year-over-year basis due to a sharp rise in
operating expenses, which fully offset a modest revenue
The year-over-year growth in revenues was primarily driven by
higher sales of lottery systems and terminals and
better-than-expected service revenues. Moreover, strong growth in
U.S. instant ticket retail sales and U.S. lottery systems
customer retail sales fully offset lackluster China instant
ticket retail sales and instant ticket retail sales in Italy
during the reported quarter.
The Zacks Consensus Estimate for the fourth quarter projects
earnings of 6 cents per share while that for fiscal 2012 stands
at a loss of 36 cents per share. There have been no revisions in
the fourth quarter and full year 2012 estimates over the last 60
The lack of downward movement in estimates signals that the
fourth quarter might not be too different from the past quarters.
This is also indicated by that fact that the stock carries a
Zacks Rank #3 (Hold).
We caution against stocks with Zacks Ranks #4 and #5 (Sell
rated stocks) going into the earnings announcement, especially
when the company is seeing negative estimate revisions
Other Stocks to Consider
Our model states that a stock needs to have both a positive
Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, #2 or #3 to beat earnings estimates.
You could, however, consider the following stocks that satisfy
Bally Technologies Inc.
) has a Zacks Rank #2 (Buy) and Zacks Earnings ESP of +1.18%.
MGM Resorts International
) has a Zacks Rank #3 (Hold) and Zacks Earnings ESP of
) has a Zacks Rank #2 (Buy) and a Zacks Earnings ESP of
BALLY TECH INC (BYI): Free Stock Analysis
FISERV INC (FISV): Free Stock Analysis Report
SCIENTIFIC GAME (SGMS): Free Stock Analysis
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