Light and Wonder LNW reported relatively healthy third-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate but revenues missing the same.
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The Las Vegas-based cross-platform games and entertainment company reported the ninth consecutive quarter of double-digit revenue growth, exemplifying its portfolio strength and resilient business model.
Bottom Line
Net income in the reported quarter was $64 million or 71 cents per share compared with $75 million or 81 cents per share in the year-ago quarter. The decrease in GAAP earnings despite top-line growth was primarily due to higher operating costs.
Non-GAAP net income was $1.34 per share, which beat the Zacks Consensus Estimate by 18 cents.
Light & Wonder, Inc. Price, Consensus and EPS Surprise
Light & Wonder, Inc. price-consensus-eps-surprise-chart | Light & Wonder, Inc. Quote
Revenues
Total revenues in the third quarter of 2024 rose to $817 million from $731 million in the prior-year quarter, propelled by growth in all business verticals. However, the top line missed the consensus estimate of $827 million.
Services revenues increased to $530 million from $503 million in the year-ago quarter, while product sales were $287 million, up from $228 million in the year-ago quarter. This is the 14th consecutive quarter of consolidated revenue growth for the company.
Gaming revenues were $537 million, up 15% year over year, driven by sales growth of gaming machines and healthy demand trends in gaming operations and gaming systems.
Revenues from SciPlay increased to $206 million from $196 million in the year-ago quarter. The year-over-year increase was mainly fueled by the core social casino business.
The average revenue per daily active user increased to $1.04 in the quarter, up 8% year over year. Greater engagement and monetization for players enhanced the top line for this segment. iGaming revenues increased to $74 million from $70 million, up 6% from the year-ago quarter, driven by continued momentum in North America and Europe, as well as strong content launches.
Other Details
Non-GAAP consolidated AEBITDA was $319 million compared with $286 million in the year-ago quarter, driven by revenue growth and sustained margin strength across all businesses. AEBITDA margin remained flat at 39%.
Cash Flow & Liquidity
For the first nine months of 2024, the company generated $430 million of cash from operating activities compared with $423 million in the year-ago period. As of Sept. 30, 2024, it had $347 million in cash and cash equivalents with $3.85 billion of long-term debt.
LNW’s Zacks Rank
Light and Wonder currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
AST SpaceMobile, Inc. ASTS is scheduled to release third-quarter earnings on Nov. 14. The Zacks Consensus Estimate for earnings is pegged at a loss of 18 cents per share, indicating growth of 21.74% from the year-ago reported figure.
The company delivered an average earnings surprise of 26.32% in the last reported quarter.
Keysight Technologies, Inc. KEYS is scheduled to release third-quarter earnings on Nov. 19. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, indicating a decline of 21.1% from the year-ago reported figure.
Workday, Inc. WDAY is scheduled to release third-quarter fiscal 2025 earnings on Nov. 26. The Zacks Consensus Estimate for earnings is pegged at $1.72 per share, indicating growth of 12.4% from the year-ago reported figure.
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