Scientific Games CorporationSGMS recently disclosed that the Ohio Lottery Commission has extended its primary instant games contract for two years. Back in September 2015, Scientific Games had signed a two-year contract with four two-year extension options to provide instant games and related services to the Ohio Lottery.
The company also provides the Lottery with research and consumer studies, licensed properties, and interactive services.
Apart from instant games, Scientific Games has introduced its lottery retail development and training program, SalesMaker in the state.
Notably, Scientific Games has been the primary provider of instant games to the Ohio Lottery for 16 years, which was ranked among the Top 20 lotteries worldwide for total instant game sales in fiscal year 2016, according to La Fleur's Almanac.
We note that Scientific Games has massively outperformed the industry on a year-to-date basis. While the stock returned 150.3%, the industry gained 12.4%.
Scientific Games Dominates Instant Ticket Market
Scientific Games is a leading provider of instant tickets in both domestic and overseas market. During last year, the company won and extended significant contracts in different territories, which are expected to boost top-line growth.
Notably, the company reported a 5.1% year-on-year increase in its revenue figures for the second quarter of 2017, representing its seventh quarter of consecutive year-over-year growth.
Currently, it supplies more than 70% of lottery instant games in the U.S. and provides games, technology and services to more than 150 lotteries worldwide.
During the second quarter of 2017, the company won a four-year contract to continue to provide the New Hampshire Lottery with instant games and services.
In June 2017, it was awarded a new, eight-year systems technology and services contract from the Maryland Lottery and Gaming Control Agency. More recently in July 2017, the company won a six-year contract with its 30-year old partner, Colorado Lottery, to continue to be the primary supplier of instant games and services.
Scientific Games Corp Price
Zacks Rank & Stocks to Consider
Presently, Scientific Games carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader tech space include CGI Group, Inc. GIB , CACI International, Inc. CACI and LogMein, Inc. LOGM . CGI Group sports a Zacks Rank #1 (Strong Buy), while both CACI International and LogMein carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term expected EPS growth rates for CGI Group, CACI International and LogMein are 9%, 10% and 17.5%, respectively.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.