Gaming products and services provider Light & Wonder (NASDAQ: LNW) will be reporting results tomorrow after the bell. Here’s what investors should know.
Light & Wonder met analysts’ revenue expectations last quarter, reporting revenues of $797 million, up 3.5% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EPS estimates but a miss of analysts’ iGaming revenue estimates.
Is Light & Wonder a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Light & Wonder’s revenue to grow 7.1% year on year to $809.3 million, slowing from the 12.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Light & Wonder has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Light & Wonder’s peers in the gaming solutions segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 20.7%, beating analysts’ expectations by 0.5%, and Accel Entertainment reported revenues up 7.3%, topping estimates by 1.6%. Rush Street Interactive traded down 5.4% following the results.
Read our full analysis of Rush Street Interactive’s results here and Accel Entertainment’s results here.
There has been positive sentiment among investors in the gaming solutions segment, with share prices up 9.2% on average over the last month. Light & Wonder is up 18.3% during the same time and is heading into earnings with an average analyst price target of $113.60 (compared to the current share price of $93.40).
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