Light & Wonder shares jump as analysts applaud earnings beat
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More news: Light & Wonder's share price jumped almost 5% at the open before settling at around $160 a share (2.2%) in early trading on the back of a strong June quarter result.
What they said: Jarden analysts applauded the "better-than-expected result" as the company beat expectations on group and gaming revenue. Light & Wonder also expanded its margins on adjusted earnings, beating expectations as it grew direct to consumer sales for its social casino game arm.
Analysts applauded impressive growth in its gaming unit base in North America while Australia and Asia led outright unit sales. Jarden maintained its 12-month target price on the stock of $167.
Light & Wonder rides surging gaming revenue
The news: Dual-listed gaming company Light & Wonder has published its June quarter results, revealing USD818 million ($1.25 billion) in consolidated revenue, growing 12% across its suite of gambling products.
The numbers: Light & Wonder posted growth across its three main business segments on the same quarter last year. Gaming revenue jumped 14% to USD539 million and SciPlay — the company's social casino game arm — was up 8% to USD205 million. iGaming, which spans sports betting and online gambling, brought in USD74 million, up 6%.
The company is carrying USD3.9 billion in principal debt, translating to a net debt leverage ratio of 3x. It returned USD175 million of capital in the first half of 2024, buying back 1.8 million shares. On Thursday, it announced a new USD1 billion buy back program.
The context: The Aristocrat rival dual-listed on the ASX in May last year, with the stock climbing 72% in the proceeding 14 months. Its Nasdaq listing was added to the Russell 1000 index in June.
What they said: Light & Wonder chief financial officer Oliver Chow said: "We continue to see improved earnings quality with consistent growth and healthy margins, all while investing back into the business to scale for the future".
"The new $1.0 billion share repurchase program is a testament to the value we see in the business and confidence in our ability to execute to plan over the long-term," he said.
The source: ASX announcement
