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Here's What Key Metrics Tell Us About Light & Wonder (LNW) Q2 Earnings

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Light & Wonder (LNW - Free Report) reported $731 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 19.8%. EPS of $1.02 for the same period compares to -$0.07 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $674.33 million, representing a surprise of +8.40%. The company delivered an EPS surprise of +209.09%, with the consensus EPS estimate being $0.33.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Light & Wonder performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenue- SciPlay: $190 million versus the three-analyst average estimate of $185.50 million. The reported number represents a year-over-year change of +18.8%.
  • Revenue- Gaming: $471 million versus the three-analyst average estimate of $423.83 million. The reported number represents a year-over-year change of +20.8%.
  • Revenue- iGaming: $70 million versus $66 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +16.7% change.
  • AEBITDA- Gaming: $233 million versus $204.67 million estimated by three analysts on average.
  • AEBITDA- Corporate: -$35 million versus -$32.67 million estimated by three analysts on average.
  • AEBITDA- iGaming: $24 million versus the three-analyst average estimate of $21.53 million.
  • AEBITDA- SciPlay: $59 million compared to the $51.93 million average estimate based on three analysts.
View all Key Company Metrics for Light & Wonder here>>>

Shares of Light & Wonder have returned +10.7% over the past month versus the Zacks S&P 500 composite's +2.8% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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