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Light & Wonder (LNW) Q2 Earnings Top on Solid Revenue Growth

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Light & Wonder, Inc. (LNW - Free Report) reported solid second-quarter 2024 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. The Las Vegas-based cross-platform games and entertainment company reported 8th consecutive quarter of double-digit revenue growth, which exemplified its portfolio strength and resilient business model.

Bottom Line

Net income in the reported quarter was $82 million or 90 cents per share, against a net loss of $1 million or a loss of a penny per share in the year-ago quarter, primarily driven by top-line growth. Non-GAAP net income was $1.42 per share, which beat the Zacks Consensus Estimate by 38 cents.

Light & Wonder, Inc. Price, Consensus and EPS Surprise

Light & Wonder, Inc. Price, Consensus and EPS Surprise

Light & Wonder, Inc. price-consensus-eps-surprise-chart | Light & Wonder, Inc. Quote

Revenues

Total revenues in the second quarter of 2024 rose to $818 million from $731 million in the prior-year quarter, propelled by growth in all business verticals. The top line beat the consensus estimate of $806 million. Services revenues increased to $526 million from $496 million in the year-ago quarter, while product sales were $292 million, up from $235 million in the year-ago quarter. This is the 13th consecutive quarter of consolidated revenue growth for the company.

Gaming revenues were $539 million, up 14% year over year, driven by sales growth of gaming machines and healthy demand trends in gaming operations and gaming systems. Revenues from SciPlay surged to $205 million from $190 million in the year-ago quarter. The year-over-year increase of 8% was mainly fueled by the core social casino business. The average revenue per daily active user increased to a record-high tally of $1.04 in the quarter, up 12% year over year. Greater engagement and monetization for players enhanced the top line from this segment. iGaming revenues increased to $74 million, up 6% from the year-ago quarter, driven by growth in North America.

Other Details

Non-GAAP consolidated AEBITDA was $330 million compared with $281 million in the year-ago quarter, with revenue growth and sustained margin strength across all businesses. AEBITDA margin rose to 40% from 38% in the year-earlier quarter.

Cash Flow & Liquidity

For the first six months of 2024, the company generated $312 million of cash from operating activities compared with $219 million in the year-ago period. As of Jun 30, 2024, it had $321 million in cash and cash equivalents with $3,849 million of long-term debt.

Zacks Rank

Light & Wonder currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Upcoming Releases

Cogent Communications Holdings, Inc. (CCOI - Free Report) is scheduled to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.02 per share, indicating a decline of 684.6% from the year-ago reported figure.

Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, indicating growth of 3.4% from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 4.8%. AKAM delivered an average earnings surprise of 5.4% in the last four reported quarters.

CommScope Holding Company, Inc. (COMM - Free Report) is scheduled to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at $0.06 per share, suggesting a decline of 68.42% from the year-ago reported figure.

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