Light & Wonder shares plunge after Q1 results miss
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The news: Shares in Light & Wonder tumbled in early trade after the gaming company reported first quarter earnings that missed consensus estimates and failed to impress investors.
Shares have fallen 20.87% to 91 cents at 11:17am AEST.
The numbers: For the first quarter, the group’s consolidated revenue rose 2% to USD790 million ($1 billion) from the prior corresponding period. Consolidated EBITDA saw a 5% increase to USD327 million.
While adjusted net profit after tax (NPAT) fell 2% to USD115 million, the company saw an 86% surge in adjusted cashflow, reaching USD207 million.
The company expects FY26 EBITDA guidance to land in the mid-to-high end of the previously disclosed target range.
The context: Light & Wonder stated that first-quarter revenue growth was driven by strong performance in gaming operations, supported by continued momentum in its iGaming division.
Despite the stronger year-on-year quarter, EBITDA was 3% below the market forecast of USD347 million, while its NPAT was also below the estimated USD118 million.
RBC Capital Markets analyst Mark Wilson described the results as “slightly disappointing”, however he has maintained an “outperform” rating on the stock with a price target of $190.
