Scientific Games up as adjusted 1Q profit tops Wall Street

NEW YORK - Shares of Scientific Games Corp. jumped Friday after the lottery products maker said its adjusted first-quarter profit topped analysts' estimates.

Late Thursday Scientific Games reported earnings for the period ended March 31 fell 20 percent to $19.9 million, or 21 cents per share, from $24.8 million, or 26 cents per share, a year ago.

Excluding phone card restructuring charges, a stock-based compensation expense and a Global Draw Ltd. earnout accrual, profit dipped to $29 million, or 31 cents per share, from $30 million, or 32 cents per share.

Operating revenue gained 6 percent to $257 million from $242.3 million.

Analysts polled by Thomson Financial expected net income of 23 cents per share on sales of $269.7 million, on average. Estimates typically exclude one-time items.

Steven Wieczynski of Stifel Nicolaus & Co. anticipated the company's stock would get a lift from its improved product margins and expansion efforts in China.

The analyst reiterated a "Hold" rating.

Craig-Hallum Capital's Robert Evans was pleased with Scientific Games' solid quarterly results, saying in a client note that he expects an even better performance in the second quarter based on factors such as improved instant ticket margins and growth in Italy and China.

Evans kept a "Buy" rating and $37 price target.

Shares of New York-based Scientific Games gained $2.28, or 8.3 percent, to $29.84 in midday trading. Over the past year, the stock has traded between $15.87 and $40.70.

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