IGT analysts revise forecasts after Q4 results.

TLDR:

Key points:

• International Game Technology reported upbeat results for its fourth quarter with revenue growth of 3% year-on-year.
• Analysts have cut their price targets on IGT following merger news.

Article Summary:

International Game Technology (IGT) posted positive results for its fourth quarter, exceeding revenue and adjusted EPS expectations. The company announced plans to split the business into separate lottery and gaming entities to create more value for stakeholders. However, analysts have lowered their price targets on IGT following the announcement.

For fiscal 2024, IGT expects revenue in the range of $4.30 billion to $4.40 billion with an operating margin of 20% to 21%. The company also expects first-quarter revenue to be around $1.0 billion. Despite the positive quarterly results, IGT shares fell 6.2% following the news.

Truist Securities and Stifel both cut their price targets on IGT, with Truist Securities maintaining a Hold rating and Stifel reiterating a Hold rating. These changes in price targets reflect uncertainty surrounding the company’s future performance post-merger.