Gaming products and services provider Light & Wonder (NASDAQ:LNW) will be reporting earnings tomorrow after market close. Here's what you need to know.
Light & Wonder beat analysts' revenue expectations by 5.4% last quarter, reporting revenues of $756 million, up 12.8% year on year. It was a very strong quarter for the company, with a decent beat of analysts' earnings estimates and a narrow beat of analysts' Gaming revenue estimates.
Is Light & Wonder a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Light & Wonder's revenue to grow 9.1% year on year to $797.3 million, slowing from the 19.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.06 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Light & Wonder has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 4.4% on average.
Looking at Light & Wonder's peers in the gaming solutions segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 33.5%, beating analysts' expectations by 9.4%, and Accel Entertainment reported revenues up 5.7%, topping estimates by 2.7%. Rush Street Interactive traded up 7.9% following the results while Accel Entertainment was also up 10.2%.
Read our full analysis of Rush Street Interactive's results here and Accel Entertainment's results here.
Investors in the gaming solutions segment have had steady hands going into earnings, with share prices flat over the last month. Light & Wonder is down 2.4% during the same time and is heading into earnings with an average analyst price target of $114.6 (compared to the current share price of $102.38).
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