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Analyst Blog
Tower Group Falls in Line
Posted Fri Nov 06, 06:56 pm ET
by Zacks Equity Research

Tower Group Inc.
's (TWGP) third-quarter earnings of 74 cents were in line with the Zacks Consensus Estimate. Results were affected favorably by an increase in premiums written due to the acquisitions of CastlePoint and Hermitage. Last year, the company had reported earnings of 79 cents per share.

Gross premiums written and produced increased 39.4% year-over-year to $283 million. Total revenues increased 96.1% year-over-year to $256.3 million. Net premiums earned of $223.9 million represented 87.3% of total revenues in the reported quarter, compared to 67.5% for the same period in 2008.

Net investment income increased 165.9% year-over-year to $21.7 million, with a tax-equivalent yield of 5.6% versus 5.5% in the year-ago period.

Total commission and fee income decreased 78.2% year-over-year to $8.1 million. Commission and fee income decreased primarily due to management's decision not to cede quota share brokerage premiums in 2009.

Segment results

Brokerage Insurance: Gross premiums written increased 25.8% to $205.6 million. Net combined ratio deteriorated to 87.6% from 80.5% in the prior year period.

Specialty Business: Gross premiums written increased 95.4% to $77.3 million, due to the acquisition of the reinsurer CastlePoint. Net combined ratio improved to 83.6% from 87.4% in the prior-year period.

Insurance Services: Revenues slumped to $0.2 million from $18.1 million in the prior-year period. Insurance services revenue decreased in the quarter because Tower ceased to produce business on behalf of CastlePoint Insurance Company subsequent to its acquisition.

Pre-tax net unrealized gains of $67 million during the quarter led to 8.6% growth in book value to $22.72 at Sep 30, 2009, versus $20.93 at June 30, 2009. Return on equity was 13.6% down from 23.1% last year.

The company forecast fourth-quarter operating earnings to be in the range of 86 cents to 96 cents. For the full year 2009, Tower projects operating earnings between $3.15 and $3.25 per diluted share. Tower Group also forecast operating earnings of $3.50 to $3.70 per share for 2010.

Strong premium growth, steady underwriting profitability and a favorable return on equity helped the company achieve expected results in the reported quarter. The CastlePoint and Hermitage acquisitions transformed the company from a regional player into a national one.

However, some factors offsetting the positives are the company's growth and acquisition strategy, reinsurance dependence, and historical dependence on external financing. Given its previous records (acquisitions of Empire, One Beacon, and Preserver), we are optimistic about the company's ability to realize the full benefits of its latest acquisitions. We adhere to our Neutral recommendation on the shares of this company.

Read the full analyst report on TWGP

Forest Misses on Lower Sales
Posted Fri Nov 06, 06:43 pm ET
by Zacks Equity Research

Forest Oil Corporation
(FST) reported its third-quarter 2009 earnings of 48 cents per share, compared with the Zacks Consensus Estimate of 53 cents and a year-ago profit of $1.26. Before adjusting one-time items, earnings were $1.53 per share. The results came in below expectations mainly due to lower sales volumes.

Sales volumes for the quarter came in at 476 MMcfe/d (77% natural gas), down 9% from 520 MMcfe/d in the corresponding 2008 period. The decrease in production was due to deferred and divested volumes.

During the quarter, production expenses decreased approximately 24% year-over-year to $1.17 per Mcfe, mainly on the back of a fall in production. Unit general and administrative expenses for the quarter was essentially flat year-over-year to 28 cents per Mcfe, while depreciation and depletion expenses for the quarter decreased 48% year-over-year to $1.49 per Mcfe due mainly to a non-cash ceiling test write-down of oil and gas properties.

Forest invested $76.9 million during the quarter in exploration and development activities. At the end of the quarter, the company had $5.1 million in cash and net long-term debt of approximately $2.48 billion (debt-to-capitalization ratio of 71.1%).

The company revised downward its net sales volume guidance to reflect the effects of asset sales and pipeline shut-ins. Total net sales volume for 2009 will be affected by 3 Bcfe of net sales. As a result of ongoing cost cutting initiatives, the company also reduced its previous production expense guidance by 8% and G&A expense by 17%.

Despite the improving commodity-price environment, we remain concerned about the company's debt-heavy balance sheet as well as its weak production and reserve growth profile. Forest recently revised downward towards its net sales volume for 2009, citing assets sales and pipeline/infrastructure shut-ins. As such, we see limited upside from current levels and prefer other better positioned names in this space.

Read the full analyst report on FST

EOG Resources Remains Neutral
Posted Fri Nov 06, 06:42 pm ET
by Zacks Equity Research

EOG Resources Inc.
(EOG) reported third-quarter earnings of 81 cents per share, compared with the Zacks Consensus Estimate of 65 cents and a year-ago profit of $2.34. Before adjusting one-time items, earnings were 2 cents per share. Despite an increase in production volumes, earnings were down from the year-earlier level due primarily to significantly lower commodity price realizations.

Total volumes during the quarter increased approximately 4% year-over-year to 195.9 billion cubic feet equivalent (Bcfe), or 2,129 million cubic feet equivalent per day (MMcfe/d), 76% of which was natural gas and 24% liquids. Natural gas volumes decreased 3% year-over-year, led by an approximately 6% decrease in the U.S. volumes to 1,128 MMcf/d, and more than 2% decrease in Canadian volumes to 219 MMcf/d.

Crude oil and condensate production during the quarter was 59.5 thousand barrels per day (MBbl/d), up nearly 23% from the year-ago level. This was primarily driven by a 24% growth in domestic volumes, reflecting increased production in North Dakota. Natural gas liquids (NGL) volumes increased almost 69% from the year-ago quarter to 24.1 MBbl/d.

Average realized natural gas prices decreased roughly 63% year-over-year to $3.01 per Mcf. Prices decreased across all the geographical segments, with domestic realizations down nearly 64% year-over-year to $3.27 per Mcf. Average realized prices for crude oil and condensates decreased approximately 45% year-over-year to $60.65 per barrel.

Prices decreased across all the geographical segments, with domestic realizations down nearly 45% year-over-year to $60.79 per barrel. Quarterly NGL prices were $31.14 per barrel, down approximately 55% year-over-year.

At the end of the quarter, EOG had cash and cash equivalents of $608.5 million and long-term debt of $2.8 billion, representing a net debt-to-capitalization ratio of approximately 22.7%. During the quarter, EOG generated approximately $819.3 million ($3.24 per share) in discretionary cash flow (DCF), compared to a DCF of $1.17 billion ($4.66 per share) in the year-ago quarter.

The company has set a full-year target of $3.1 billion (excluding acquisitions) for exploration and development activities. Additionally, the company has allocated $300 million for natural gas gathering, processing and other expenditures.

With the performance of its North American plays, EOG has increased its 2009 total production growth target from 5.5% to 6%. Total liquids growth target was also increased from 25% to 27%. For 2010, the company has set a total organic production growth target of 13% that includes total liquids production growth of 50%.

EOG has an industry leading organic production-growth profile, strong inventory of drilling opportunities, attractive cost and return metrics and impressive long-term growth prospects. We see EOG as a core holding in the large-cap E&P space. However, its natural gas weighted assets currently is a concern. We recommend a Neutral rating for the stock.

Read the full analyst report on EOG

Red Robin Fails to Lure Diners
Posted Fri Nov 06, 06:29 pm ET
by Zacks Equity Research

Red Robin Gourmet Burgers Inc.
(RRGB), the casual dining restaurant operator, recently reported dismal third-quarter 2009 results. The quarterly earnings of 37 cents per share missed the Zacks Consensus Estimate by a penny and fell 17.8% from 45 cents posted in the prior-year quarter.

Total revenue tumbled 10.4% year-over-year to $187 million, as cash-strapped consumers are either trading down to quick-service restaurants or preferring to eat at home, leading to fall in traffic and same-store sales.

Same-store sales fell 14.9% for company-operated restaurants, driven by a 13.8% decline in guest counts and a 1.1% fall in the average guest check. Management expects guest count to decline in fiscal year 2009. Same-store sales for franchised restaurants in the U.S. dropped 14.4% and franchised restaurants in Canada fell 0.2%.

Other operators in the casual dining segment are Darden Restaurants Inc. (DRI), Brinker International Inc. (EAT) and Cosi Inc. (COSI).

Red Robin's total revenue comprises restaurant sales (down 10.4% to $183.9 million), franchise royalties and fees (down 8% to $3 million) and rent revenue (down 35.8% to $34,000).

Restaurant operating profit margin at company-operated units shrank 200 basis points (bps) to 16.5% in the quarter. The restaurant margin was hurt by a 160 bps rise in labor costs to 34.9% and a 100 bps increase in occupancy costs to 7.8%, partly offset by a 30 bps fall in cost of sales to 23.4% as well as in operating costs to 17.4%.

Management expects restaurant operating profit margin to fall 150 to 160 bps in fiscal year 2009. With every 10 bps change in the restaurant operating profit margin, earnings are expected to be affected by 4 cents a share.

Amid the recession, casual dining operators are either postponing their restaurant openings or slowing restaurant unit growth to reduce costs. Management plans to open 20 restaurants (15 company-operated and 5 franchisees) in 2009 compared to 41 restaurants (31 company-operated and 10 franchisees) opened last year. In fiscal year 2010, management expects to open 15 company-owned restaurants.

Read the full analyst report on RRGB

Read the full analyst report on DRI

Read the full analyst report on EAT

Read the full analyst report on COSI

CBS Tops Zacks Estimate
Posted Fri Nov 06, 06:28 pm ET
by Zacks Equity Research

CBS Corporation
(CBS) recently reported better-than-expected third-quarter 2009 results. The quarterly earnings of 25 cents a share surpassed the Zacks Consensus Estimate of 22 cents, but fell 35.9% from 39 cents posted in the prior-year quarter.

On a reported basis, including one-time items, quarterly earnings of 30 cents a share improved from quarterly loss of $18.58 delivered in the year-ago quarter.

The sequential rise in revenue and the cost containment drove the earnings growth. Total revenue climbed 11.4% sequentially to $3,350 million in the quarter, but tumbled 0.8% year-over-year. However, the rate of year-over-year decline sharply decelerated from 11% and 14% experienced in the second and the first quarters of fiscal year 2009, respectively.

By segments, television revenue jumped 9.3% to $2,269 million, driven by a rise in television license fees (up 36%) and affiliate revenue (up 11%), partly offset by softness in local advertising revenue (down 5%). Publishing revenue climbed 2.4% to $230.4 million.

The radio division's revenue dipped 18.8% to $318.9 million due to a slump in advertising demand. Revenue in the Outdoor segment also dropped 22.6% to $424.9 million due to sluggishness in advertising and an adverse impact of foreign currency translation. In constant dollars, outdoor sales slipped 19%. Interactive segment revenue slipped 14.8% to $121.3 million due to softness in display advertising market.

CBS notified that it is realigning its reporting segments. From fourth-quarter 2009, it will report under two groups – Content Group comprising Entertainment (television – network, studios and distribution, and films and interactive), Cable Networks, and Publishing, and another Local Group, comprising Local Broadcasting and Outdoor.

The media conglomerate CBS re-affirmed that its fiscal year 2009 operating income before depreciation and amortization (OIBDA) will be within the range of $1.725 billion to $1.925 billion. OIBDA for the quarter slipped 6.5% to $597.3 million.

During the quarter, CBS generated negative free cash flow of $23.6 million, compared to negative free cash flow of $38.1 million in the prior-year quarter. It had cash and cash equivalents of $473.8 million at the end of the quarter with total long-term debt of $6,986.4 million, representing a debt-to-capitalization ratio of 44.1%. CBS also secured a new three-year revolving credit facility of $2 billion, replacing the previous, undrawn facility that was slated to expire in December 2010.

Read the full analyst report on CBS

OGE Energy Tops Expectations
Posted Fri Nov 06, 05:24 pm ET
by Zacks Equity Research

OGE Energy Corp. (OGE) reported third quarter earnings per share (EPS) of $1.40, topping the Zacks Consensus EPS estimate of $1.34. However, EPS in the reported quarter came a dime short, compared to the year-ago EPS of $1.50. 

Earnings were boosted in the reported quarter by strong results at Oklahoma Gas and Electric Company (OG&E), offset by cooler weather in the OG&E service territory, lower commodity prices in the Enogex midstream pipeline business and an increase in the number of shares outstanding. 

In the reported quarter, OG&E registered earnings of $1.26 per share, compared to $1.15 per share in the year-ago quarter. Enogex recorded earnings of 18 cents per share, compared to 30 cents per share in the year-ago quarter. The holding company, including results from the OGE Energy Resources marketing business, posted a loss of 4 cents per share, compared to earnings of 5 cents per share in the year-ago period. 

Revenue fell to $845.3 million in the reported quarter from $1.3 billion in the year-ago quarter due to a tepid economy and a cooler summer affecting demand for electricity. Electric Utility revenues fell to $577.9 million from $682.5 million in the year-ago quarter. Similarly, Natural Gas Pipeline revenues fell to $267.4 million from $571.8 million last year. 

OGE Energy Resources reported consolidated gross margin on revenues of $431 million in the reported quarter, compared to $418 million in the year ago quarter. Operating income was $230 million, compared to $231 million in the year ago period. 

OG&E reported gross margin on revenues of $342 million, compared to $302 million in the third quarter of 2008. The increase was primarily due to retail rate increases in 2009, partially offset by milder weather. Also affecting OG&E's quarterly results were higher expenses primarily due to increased depreciation expense associated with higher levels of plant in service and higher operation and maintenance expenses, mainly as a result of increased payroll and benefits costs. Net income at OG&E was $123 million in the quarter, compared to $107 million year-over-year. 

Enogex reported gross margin on revenues of $93 million in the quarter, compared to $108 million in the comparable quarter last year. The decrease was due primarily to lower commodity prices, partially offset by continued volume growth. Net income at Enogex was $18 million in the third quarter this year, compared with $28 million in the third quarter of 2008. 

OGE Energy reaffirmed its full-year consolidated EPS guidance between $2.30 and $2.60. For fiscal 2010, the company expects EPS to be in the range of $2.70 to $2.95.

Read the full analyst report on OGE

Raising Moody's Estimates
Posted Fri Nov 06, 05:09 pm ET
by Zacks Equity Research

We are raising our estimates for Moody's Corp. (MCO) for the fourth quarter of fiscal 2009 and full year of fiscal 2010 due to continued resurgence in the company's results. Moody's is an industry leader in the credit rating industry and enjoys a high organic growth rate, along with strong profit margins and cash flows. 

Results for the first nine months of 2009, although below year-ago level were better than the Zacks Consensus Estimate, reflecting an improvement in credit markets and growth in Moody's Analytics business. 

We believe that Moody's remains a solid franchise in rating debt instruments and will show substantial growth with its diversified credit research business model and international growth. 

The company raised its outlook for fiscal 2009, for the second time this year, due to continuing strength in corporate debt issuance. Earnings per share, is expected to range between $1.60 and $1.68, up from its previous outlook of $1.45 to $1.55. Revenues for the full year are expected to be flat year-over-year, versus the previous expectation of a decline in the mid-single-digit percentage range. Recurring revenue is expected to be stable. Moreover, the company expects bond activity to remain strong, going forward. 

Although, over the longer-term, Moody's remains a solid franchise and will show substantial growth, we maintain a cautious approach as margins may be under pressure due to incremental costs related to regulatory issues in 2010. The company expects to incur incremental expenses of approximately $15 million to $25 million in 2010 related to regulatory issues. 

Despite signs of revival in economic conditions, a recovery in debt markets is expected to be slow as they face a tempered credit environment. Moreover, we don't expect a major improvement in Moody's Structured Finance business. 

Over the last five years, Moody's shares have traded in a range of 9.9X to 36.3X trailing 12-month earnings. We reiterate our Neutral recommendation on the stock with a target price of $25.00, based on a P/E multiple of 13.8X 2010 earnings, a discount to the peer group.

Read the full analyst report on MCO

Grupo Televisa Reports Mixed Results
Posted Fri Nov 06, 05:00 pm ET
by Zacks Equity Research

Grupo Televisa S.A.
(TV), the largest media company in Mexico, reported mixed financial results for the third quarter 2009. Quarterly consolidated net revenue of $970 million was an improvement of 5.5% over the prior-year quarter. However, this was below the Zacks Consensus Estimate of $983 million.

The year-over-year increase in the top-line was mainly attributable to healthy revenue growth in Sky, Cable & Telecom, Programming Exports, Pay television Networks, and Other Business segments, partially offset by a fall in revenue in Publishing and Television Broadcasting segments.

Quarterly consolidated net income was $174.8 million, up 3.8% year-over-year. Third-quarter EPGDS (Earnings per Global Depository Shares) was 31 cents, exceeding the Zacks Consensus Estimate of 29 cents. This was primarily due to effective control of operating expenses, as well as a significant reduction of integral cost of financing.

Quarterly operating segment income (excluding corporate expenses and depreciation & amortization) was $395 million, up 1.5% year-over-year. Third-quarter consolidated operating income was $294.7 million, up 0.5% over the prior-year quarter. Integral cost of financing in the reported quarter was $38.1 million, down almost 12% year-over-year. During the same quarter, the company repurchased 1.4 million CPOs (1 CPO= 117 common outstanding shares) for total consideration of a little over $5 million.

At the end of the third quarter 2009, Grupo Televisa had approximately $2.9 billion cash and marketable securities and $2.66 billion outstanding debt on its balance sheet, compared to $4.35 billion of cash and marketable securities and $3.2 billion outstanding debt at the end of the prior-year quarter. Capital expenditure, during the reported quarter was $149.2 million.

Television Broadcasting Segment

Quarterly revenue of $399.63 million was down 1.9% year-over-year. Operating profit was $198.9 million, down 3.8% year-over-year. Quarterly operating margin was 49.3% compared to 50.3% in the year-ago quarter.

Pay Television Networks Segment

Quarterly revenue of $50.74 million was up 28.6% year-over-year. Operating profit was $29.36 million, up 18.7% year-over-year. However, quarterly operating margin was 57.9%, compared to 62.7% in the year-ago quarter.

Programming Exports Segment

Quarterly revenue of $55.75 million was up 36.9% year-over-year. Operating profit was $31.2 million, up 77.6% year-over-year. Quarterly operating margin was 56%, compared to 43.2% in the year-ago quarter.

Publishing Segment

Quarterly revenue of $58.64 million was down 11.8% year-over-year. Operating profit was $2.6 million, down 78.1% year-over-year. Quarterly operating margin was just 4.4%, compared to 17.8% in the year-ago quarter.

Sky Segment

Quarterly revenue of $184.95 million was up 9.2% year-over-year. However, operating profit was $79.8 million, down 3.4% year-over-year. Quarterly operating margin was 43.1%, compared to 48.8% in the year-ago quarter.

Cable and Telecom Segment

Quarterly revenue of $161.56 million was up 10.6% year-over-year. Operating profit was $55.47 million, up 11.5% year-over-year. Quarterly operating margin was 34.3%, compared to 34.1% in the year-ago quarter.

Other Businesses Segment

Quarterly revenue of $78.6 million was up 14.6% year-over-year. Operating loss was $2.28 million, up 44.2% year-over-year. However, quarterly operating margin was negative (2.9%), compared to negative (6%) in the year-ago quarter.

Read the full analyst report on TV

VeriSign Beats Forecast
Posted Fri Nov 06, 04:55 pm ET
by Zacks Equity Research

Last night, VeriSign, Inc. (VRSN) reported revenues of $258 million from continuing operations in the third quarter of 2009.

Core businesses (Internet Infrastructure and Identity Services) generated revenues of $257 million, up 1% sequentially and up 6% year-over-year. Revenues from discontinued operations came in at $41 million.

Operating margin came in at 38.6%, marginally up from the previous quarter. Net income was $64 million. Earnings per share (EPS) of 33 cents easily beat the Zacks Consensus Estimate of 28 cents.

During the quarter, the company generated $105 million of cash from operations and used $25 million in capital expenditures. The company ended the quarter with cash and equivalents of $1.4 billion, an increase of $124 million from the previous quarter. As of September 30, 2009, deferred revenue came in at $881 million.

Subsequent to the end of the quarter, VeriSign completed the sale of its Global Security Consulting business, and Messaging and Mobile Media Services. The company has so far sold thirteen of its non-core businesses (including Jamba joint venture) for $750 million.

Management earlier indicated that it would focus on core competencies to provide highly scalable, reliable and secure Internet infrastructure services to customers around the world. Hence, the company divested a number of non-core businesses in its portfolio, such as communications, billing and commerce, content delivery, messaging and enterprise security services.

VeriSign plans to invest proceeds from the divestitures into its core Internet Infrastructure and Identity Services. It is also using funds to buy back shares and has already repurchased stock worth $22.6 million in the first half of 2009. Through the sale of these non-core businesses as well as disciplined operating management, VeriSign has managed to reduce its headcount by nearly 1,000 employees.

Going forward, management expects revenues between $258 million and $262 million, flat or up 2% sequentially. Operating margin is estimated to come in at 38.6%.

The company has completely restructured its business in the past two years and expects that these efforts will unlock value for the company in the long-term. Cash flow is expected to be strong in 2010.

The company is sitting on a huge cash balance and we expect the management to prudently invest the funds in growth businesses.

In February 2009, VeriSign had lost an unsolicited bid to acquire Certicom Corp., which develops, manufactures and markets digital information security products, technologies and services, to Research in Motion Ltd. (RIMM).

As the Internet spreads to mobile devices, we see VeriSign tapping this growth market with an array of value-added services.

Headquartered in Mountain View, California, VeriSign provides essential Internet infrastructure services to companies, service providers and website owners. The terms of the deal were not disclosed.

Read the full analyst report on VRSN

Read the full analyst report on RIMM

IGT Beats, but Earnings Down
Posted Fri Nov 06, 04:54 pm ET
by Zacks Equity Research

International Game Technology (IGT) reported adjusted earnings of 19 cents per share during fiscal 2009 fourth quarter, compared to a net income of 28 cents in the year-ago quarter. The result topped the Zacks Consensus Estimate by 3 cents. 

In the quarter, the company recorded non-cash charges of approximately $77.2 million, or 26 cents per share to give effect to a reduction in the carrying value of its investment in Walker Digital Gaming Inc. These charges also included a decline in the value of its Las Vegas Gaming International investment and foreign deferred tax provision. 

Total revenue fell 18.6% to $514.6 million from the year-ago quarter, primarily due to weakness in product revenue (45% of total revenue), which fell 23.2% to $231.4 million, while units shipped worldwide decreased 30% year-over-year. Revenue from Gaming Operations (55% of total revenue) decreased 14.4% year over year to $283.2 million due to the lower play levels and mix shift for lower-yielding, stand-alone lease operations games in its installed base. However, the quarter benefited from an increase in systems revenues and sand conversion sales. 

The installed base of recurring revenue games increased 900 units year over year to 61,400 units, driven by growth in international placements, partially offset by a reduction in domestic placements. 

Of the product revenues, North America decreased 30.7% due to lesser number of openings and replacement sales, while International revenue declined 11.5% due to the economic slowdown and negative effects of foreign currency. The company said it recognized 4,200 sales in North America during the quarter, including 3,800 replacement units. Internationally, IGT recognized 7,900 unit sales, all of which are from replacements. 

Operating Performance 

Gross margin remained unchanged from the year-ago period at 56.2% due to higher gaming gross margin, which benefited from a larger base of fully depreciated units, partially offset by lower product gross margin impacted unfavorably by higher costs related to systems upgrades and fewer systems sales and lower volumes due to fixed manufacturing costs. 

The company is focused on reducing costs related to manufacturing materials, headcount reductions and other operating expense controls and generated approximately $135 million in annualized savings. Excluding non-cash charges associated with the investment in Walker Digital, restructuring charges and bad debt expenses, operating expense fell 17% to $169.7 from the prior year quarter. Despite the fall, operating income fell 22.5% year-over-year due to lower revenue base. 

We remain encouraged by the company's substantial free cash flow which could drive future growth. The company generated $547.9 million of cash from operating activities for the full fiscal year 2009, compared to $486.5 million generated in 2008. Capital expenditures totaled $257 million for the year, compared to $298 million in the prior year. Thus, free cash flow totaled $169.2 million in fiscal 2009 versus $12.7 million in fiscal 2008. IGT exited the quarter with $247.4 million in cash and investments and $2.2 billion in debt. Deferred revenue increased approximately $48.8 million to $122.0 million at quarter-end as a result of additional multi-element contracts. 

Outlook 

The company is witnessing stabilized demand for its slot machines and casino management systems. The company plans to focus on its core activities in fiscal 2010. Management expects cost reduction throughout 2010. As a result, the company expects the EPS to be in the range of 77 cents to 87 cents per share, including 6 cents of non-cash interest expense due to a change in accounting for convertible notes. 

International Game Technology is a leader in slot machine distribution and manufacturing. IGT sells its games in the U.S. and internationally. It also makes systems that monitor slot machine play. However, the company faces strong competition from Bally Technologies Inc. (BYI) and WMS Industries Inc. (WMS) in the U.S.

Read the full analyst report on IGT

Read the full analyst report on BYI

Read the full analyst report on WMS

Recent Posts

Tower Group Falls in Line
Fri Nov 06, 06:56 pm ET

Forest Misses on Lower Sales
Fri Nov 06, 06:43 pm ET

EOG Resources Remains Neutral
Fri Nov 06, 06:42 pm ET

Red Robin Fails to Lure Diners
Fri Nov 06, 06:29 pm ET

CBS Tops Zacks Estimate
Fri Nov 06, 06:28 pm ET

OGE Energy Tops Expectations
Fri Nov 06, 05:24 pm ET

Raising Moody's Estimates
Fri Nov 06, 05:09 pm ET

Grupo Televisa Reports Mixed Results
Fri Nov 06, 05:00 pm ET

VeriSign Beats Forecast
Fri Nov 06, 04:55 pm ET

IGT Beats, but Earnings Down
Fri Nov 06, 04:54 pm ET

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