NASDAQ$LNWO

Light & Wonder Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Scientific Games' Q3 2021 results were reported, demonstrating revenue growth and strategic progress.

Scientific Games reported a strong third quarter with consolidated revenue from continuing operations up 25% year-over-year to $539 million. The company is focusing on de-leveraging and investing in growth following the sale of its Lottery and Sports Betting businesses for $7 billion.

  • Consolidated revenue from continuing operations increased by 25% year-over-year.
  • Net income from continuing operations was $100 million, a significant improvement from the prior year's net loss of $187 million.
  • The company made progress on strategic pillars, including optimizing the portfolio and investing in growth opportunities.
  • Debt was reduced by $635 million since October 2020, with a net debt leverage ratio decline of 4 turns to 6.6x.

Headline financials

Total Revenue

$539M

Previous: $698M-22.8%
EPS (adj)

$0.96

Previous: -$0.97+199.0%
SciPlay ARPDAU

$0.69

No prior period
SciPlay AMRPPU

$10.00

No prior period
Avg Machine Sales Price

$16.1K

No prior period
Free Cash Flow

$276M

Previous: -$117M+335.9%
Net Income

$276M

Previous: -$117M+335.9%
Operating Income

$34M

Previous: $48M-29.2%
Gross Profit

$73M

Previous: -$16M+556.3%
Cash & Equivalents

$782M

Previous: $1.05B-25.2%
Total Assets

$7.85B

Previous: $8.1B-3.1%
Stock-Based Comp

$17M

Previous: $16M+6.3%

Revenue & EPS history

Light & Wonder · Revenue · Quarterly

$539M

Q3 2021-22.8%vs Q3 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Light & Wonder · $200M total across 2 segments · Q3 2021

  • SciPlay
    $147M-2.6%
  • iGaming
    $53M

Forward guidance

Scientific Games is focusing on becoming the leading cross-platform global game company by optimizing its portfolio, investing in content and digital markets, and de-levering the balance sheet.

Tailwinds

  • Sale of Lottery and Sports Betting businesses for $7 billion to de-lever the balance sheet.
  • Streamlined organization focused on cross-platform game development.
  • Acquisition of Authentic Gaming to enter the Live Casino market.
  • Strong growth in Gaming operations and iGaming businesses.
  • Expected return to growth for SciPlay in the fourth quarter.

Headwinds

  • Impact of COVID-19 pandemic on casino and lottery operations.
  • Risks related to the pending divestitures and acquisition.
  • Potential unfavorable social, political, economic, and financial conditions.
  • Dependence on key providers and suppliers.
  • Challenges relating to completion of the domestic migration to enterprise resource planning system.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.1%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+0.0%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+41.5%

Q2 2017

Best reaction

-19.5%

Q1 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%+1.0%-1.2%
Q4 2025-2.7%-7.6%-14.6%
Q3 2025+8.7%+22.0%+33.2%
Q1 2025-14.0%-5.3%-7.1%
Q4 2024+6.9%+7.9%-12.3%
Q3 2024-10.9%-10.0%-9.8%
Q2 2024+1.6%-0.4%+4.3%
Q1 2024-6.4%-5.9%-0.2%
Q4 2023+2.5%+7.8%+7.4%
Q3 2023+8.9%+8.9%+5.4%
Q2 2023+2.4%+3.9%+4.3%
Q1 2023+2.5%+4.4%+13.2%
Q4 2022+0.9%-0.2%-4.1%
Q3 2022+3.0%+9.2%+13.8%
Q2 2022+3.1%+8.2%-10.8%
Q1 2022+0.3%+9.2%+12.1%
Q4 2021-1.4%-5.6%-6.6%
Q3 2021-2.3%-8.8%-20.1%
Q2 2021+5.1%+9.1%+10.8%
Q1 2021-0.1%+4.3%+34.4%
Q4 2020+6.8%-1.2%-17.7%
Q3 2020-0.2%-1.2%+7.6%
Q2 2020+5.0%+5.8%+21.7%
Q1 2020-11.4%-10.6%+27.4%
Q4 2019-16.4%-17.6%-83.7%
Q3 2019+20.6%+16.6%+5.5%
Q2 2019+0.5%-1.7%-9.6%
Q1 2019+8.6%+6.6%-3.5%
Q4 2018+9.8%+11.5%-19.9%
Q3 2018+4.0%-4.9%-20.9%
Q2 2018-17.7%-27.6%-36.9%
Q1 2018-3.4%-3.1%+11.1%
Q4 2017-12.1%-12.5%-9.6%
Q3 2017+1.7%+1.4%+11.7%
Q2 2017+41.5%+44.1%+29.4%
Q1 2017+3.7%-0.4%+4.1%
Q4 2016+7.4%+3.1%+12.9%
Q3 2016+0.9%+7.0%+31.3%
Q2 2016-11.8%-13.1%-12.6%
Q1 2016-6.7%
Q4 2015+38.7%
Q3 2015-18.8%
Q2 2015-15.9%
Q1 2015-4.8%
Q4 2014-10.6%
Q3 2014+22.9%
Q2 2014-2.7%
Q1 2014-19.5%
Q4 2013+18.0%
Q3 2013+4.1%
Q2 2013+7.8%
Q1 2013-6.2%
Q4 2012-6.9%
Q3 2012-16.2%
Q2 2012-19.4%
Q1 2012+2.4%
Q4 2011-15.8%
Q2 2011-15.8%
Q3 2011+6.3%
Q1 2010-0.4%
Q1 2011+3.4%
Q4 2010+5.5%
Q4 2008+5.5%
Q2 2010+5.5%
Q3 2010-1.1%
Q3 2009-1.1%
Q2 2009-4.7%
Q4 2009-4.7%

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