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Light & Wonder Q3 net income rises 17% on margin gains

By Reuters News


Overview

  • Gaming technology provider reported Q3 revenue up yr/yr, net income rose 17%

  • Company expanded high-quality recurring revenue and improved margins in Q3

  • Outlook rating upgraded to positive by Fitch during the quarter


Outlook

  • Company aims to improve net debt leverage ratio to below 3.0x in 1H27

  • Light & Wonder expects recurring revenue focus to drive higher margins and predictable earnings

  • Company outlook rating upgraded to Positive by Fitch


Result Drivers

  • RECURRING REVENUE EXPANSION - Co said scaling high-quality recurring revenue contributed to higher earnings quality and enhanced margins

  • IGAMING GROWTH - Co reported iGaming revenue up 13% yr/yr, helping drive overall recurring revenue expansion

  • MARGIN IMPROVEMENT - Co said margin expansion and cash generation were key drivers in Q3


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$824 mln

Q3 Net Income

$133 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • Wall Street's median 12-month price target for Light & Wonder, Inc. is $117.50, about 33.3% above its November 3 closing price of $88.15

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Nov 4 - Betting tech firm Kambi Q3 revenue rises on business model growth, cost control

  • Nov 3 - Red Rock Resorts Q3 revenue beats estimates on Las Vegas growth

  • Nov 4 - Melco Resorts Q3 revenue slips on weaker gaming


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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