WMS Industries and International Game Technology Under the Microscope: Casino Equipment Stocks Show Good Returns

WMS Industries and International Game Technology Under the Microscope: Casino
                      Equipment Stocks Show Good Returns

PR Newswire

LONDON, February 12, 2013

LONDON, February 12, 2013 /PRNewswire/ --

Times are good for gaming equipment company stocks. Casino and gambling
industry is recovering from recession and is showing good development and the
cascading effect is clearly visible on the gaming equipment stocks. The
industry is also showing signs of consolidation as there are ample mergers and
acquisitions taking place. Scientific Games is looking to takeover WMS
Industries Inc. (NYSE: WMS), however, the deal is yet to be ratified. On the
other hand, International Game Technology (NYSE: IGT) reported strong
quarterly results. StockCall has released full comprehensive research on WMS
Industries and International Game Technology, and these free technical
analysis can be downloaded by signing up at

WMS Industries - Acquisition in the Air

WMS Industries agreed to be acquired by Scientific Games for $1.5 billion. The
deal priced the company stock at $26 a share and the consideration is payable
in cash. The stock has substantial upside if the deal goes through. However,
there are also chances of the deal falling through, and in such a case, the
stock may tumble down to its previous pre-acquisition price level. WMS
Industries reported its operating margin at 14 percent, which is among the
lowest margins prevailing in the industry. The company is also saddled with
patent issues. Free technical analysis on WMS Industries available by signing
up at http://www.StockCall.com/WMS021213.pdf  

WMS Industries recently announced its earnings for the quarter ended on
December 31^st, 2012. For the period, the company earned revenue of $157.5
million, down from $162.2 million in revenue it had reported for the
corresponding quarter of the last year. Its net income also fell from $16.1
million to $4.3 million. On the positive side, its gaming operations revenue
jumped $8 million on Y-o-Y basis. Its cash flows from operating activities
also increased.

The main catalyst for the stock at the moment is its acquisition news by
Scientific Games. However, even if deal falls through, the company has
alternatives planned out. In December last year, it launched its new video
poker platform and is likely to carry out the expansion of this program. Its
products are also garnering good demand and the future looks good for the
company despite some negative points.

International Game Technology Posts Healthy Q1 Results

International Game Technology increased its first quarter revenue to $530
million, up 19 percent. Its adjusted EPS also grew 65 percent to 28 cents per
share. Talking about the future plans of the business, CEO Patti Hart said,
"Through the remainder of fiscal 2013, we intend to build on this momentum by
leveraging our core business, distributing our best-in-class content more
broadly, and returning capital to shareholders." Register today and access the
free research on International Game Technology at

The stock is also gaining interest from institutional investors such as
Balyasny Asset Management which augmented its holding of IGT.

International Game Technology grew 7 percent in the past 52 weeks and it also
offers a dividend yield of 1.69 percent. However, the company is also
increasing shareholders' value by buying back its stock. Late last year, it
completed accelerated stock buyback worth $400 million. During FY2012, the
company bought $540 million worth of its stock. The company also increased its
quarterly dividend by 17 percent and with stronger results, the dividend is
expected to increase or remain stable during the near future. International
Game Technology passed a proposal to buy back up to $1 billion worth of its
stock. Hence, investors look to benefit from this stock.

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SOURCE StockCall.com

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