Investors interested in stocks from the Gaming sector have probably already heard of Light & Wonder (LNW) and DraftKings (DKNG) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with pos ...

Core Viewpoint - Light & Wonder's stock experienced a significant increase of over 10% following a favorable court ruling in its legal dispute with Aristocrat Leisure, contrasting with the flat performance of the S&P 500 [1]. Legal Dispute - Light & Wonder is involved in a legal case with Aristocrat Leisure, which accuses it of copying elements from its casino slot game in the design of Light & Wonder's Dragon Train game [2]. - The Nevada court ruled in favor of Light & Wonder, stating that the company does not need to disclose its mathematical models related to the slot games in question, and requested Aristocrat to specify the trade secrets it is trying to protect [4]. Background of the Case - Aristocrat, based in Australia, initiated the lawsuit against Light & Wonder in 2024, claiming it would seek all appropriate remedies for the alleged harm caused by Light & Wonder's actions [5]. Market Reaction - Following the positive court ruling, investors showed confidence in Light & Wonder, leading to a notable rise in its stock price [1].

Core Viewpoint - Light & Wonder (LNW) shares have increased by approximately 6.5% over the past month, outperforming the S&P 500, but there are concerns about whether this positive trend will continue leading up to the next earnings release [1] Group 1: Earnings Estimates - Estimates for Light & Wonder have trended downward over the past month, with a consensus estimate shift of -5.64% [2] - The overall direction and magnitude of estimate revisions indicate a downward shift, resulting in a Zacks Rank 3 (Hold) for Light & Wonder, suggesting an expectation of in-line returns in the coming months [4] Group 2: VGM Scores - Light & Wonder has a strong Growth Score of A, a Momentum Score of A, and a Value Score of A, placing it in the top 20% for this investment strategy, leading to an aggregate VGM Score of A [3] Group 3: Industry Performance - Light & Wonder is part of the Zacks Gaming industry, where Boyd Gaming (BYD) has gained 2.4% over the past month, reporting revenues of $991.57 million for the last quarter, reflecting a year-over-year increase of +3.2% [5] - Boyd Gaming is expected to post earnings of $1.62 per share for the current quarter, indicating a change of +2.5% from the previous year, with a Zacks Consensus Estimate change of -0.2% over the last 30 days, also holding a Zacks Rank 3 (Hold) and a VGM Score of A [6]

LNW NASDAQ • ASX L I S T E D I NVE ST OR DAY New York City • May 20, 2025 INVESTOR DAY 2025 3 LNW NASDAQ • ASX L I S T E D INVESTOR DAY 2025 2 Agenda LNW NASDAQ • ASX L I S T E D | Introduction | Business Overview and Strategy | | --- | --- | | Products, Business Verticals, | Our Unique Business Model and Leading | | & Cross-Platform | Positions | | Expert Panel | Differentiation Among Gaming Industry | | Financials | Robust Foundation and Opportunity for | | | Continued Growth | | Q&A | | INVESTOR DAY 2025 ...

Summary of Light & Wonder (LNW) 2025 Investor Day Company Overview - **Company Name**: Light & Wonder (LNW) - **Headquarters**: Las Vegas, Nevada - **Market Presence**: Dual listed on NASDAQ and ASX, with nearly 40% of market cap on ASX - **Employee Count**: Approximately 6,500 globally - **Revenue**: Consolidated revenue of just under GBP 3.2 billion, representing a 13% CAGR since 2022 [8][9][27] Financial Performance - **EBITDA**: Grew to $1.24 billion, a 17% CAGR [9][27] - **NPATA**: Increased to $480 million, a 24% CAGR [9][27] - **Debt Reduction**: Leverage reduced from 10.5 times in 2020 to 3 times currently [29] - **Shareholder Returns**: $1.2 billion returned to shareholders through share repurchase programs [29] Strategic Initiatives - **Acquisition of Grover Charitable Gaming**: Aimed at enhancing growth in the charitable gaming segment, which is a fast-growing adjacency with over 20% top-line growth [54][55][59] - **R&D Investment**: Increased internal rate of investment in R&D and CapEx by 28% since 2022 [22][28] - **Future Financial Targets**: Targeting $2 billion in EBITDA by 2028 and doubling NPATA per share from $5.27 to over $10.55 [33][34] Market Position and Growth Strategy - **Gaming Segments**: Focus on gaming, iGaming, social casino, and now charitable gaming [42] - **Game Performance**: Held 28% of the top new core performing games in North America as of the latest report [25][27] - **Expansion Plans**: Plans to enter new markets, including Indiana, which presents a $100 million revenue opportunity [79] Charitable Gaming Insights - **Market Size**: Charitable gaming market valued at $4.4 billion, with $1.1 billion allocated to electronic pull tabs [73] - **Customer Loyalty**: Strong customer base committed to supporting charities through gaming [74] - **Integration of Grover**: Grover's existing game mechanics will be enhanced with Light & Wonder's game catalog, improving quality and profitability [62][100] Corporate Culture and ESG Commitment - **High-Performance Culture**: Emphasis on attracting and retaining top talent, with a focus on collaboration and integrity [45][49] - **ESG Initiatives**: Investment in responsible gaming programs and alignment with UN Sustainable Development Goals [51][53] Conclusion - **Future Outlook**: Light & Wonder is positioned for significant growth through strategic acquisitions, enhanced R&D, and a focus on high-quality game development across multiple gaming segments, including the newly integrated charitable gaming sector [41][43][100]

Core Insights - Light & Wonder (NASDAQ: LNW) has experienced a significant stock price increase of 900% after divesting its lottery and sports betting units, which resulted in the elimination of over $1 billion in net debt [1] Company Overview - The company sold its lottery arm to Brookfield and its sports betting unit to Endeavor, focusing on its core business operations [1] Financial Impact - The divestitures led to a substantial reduction in net debt, enhancing the company's financial position and investor confidence [1]

Core Viewpoint - Light & Wonder, Inc. is transitioning from a gaming stock to a diversified, cross-platform content business characterized by high margins, strong recurring revenues, and an expanding digital presence [1] Group 1 - The company is evolving into a more valuable entity beyond its initial classification as a gaming stock [1] - It is focusing on building a diversified content business that leverages multiple platforms [1] - The business model is expected to yield high margins and strong recurring revenues [1]

Core Insights - Light & Wonder, Inc. reported modest first-quarter 2025 results with adjusted earnings surpassing Zacks Consensus Estimate while revenues missed expectations [1] Financial Performance - Net income for the quarter remained unchanged at $82 million or 94 cents per share compared to $82 million or 88 cents per share in the prior-year quarter, with quarterly earnings beating the Zacks Consensus Estimate by 18 cents [3] - Total revenues for Q1 2025 rose to $774 million from $756 million in the prior-year quarter, marking the 16th consecutive quarter of year-over-year revenue growth, although it missed the consensus estimate of $809 million [4] - Gaming revenues were $495 million, up 4% year over year, while SciPlay generated $202 million in revenues, down 2% year over year [5] - iGaming revenues increased 4% year over year to $77 million, driven by strong demand in North America and global market growth [6] Operational Efficiency - Non-GAAP consolidated AEBITDA improved to $311 million from $281 million in the year-ago quarter, with AEBITDA margin increasing to 40% from 37% [7] Cash Flow and Liquidity - The company generated a cash flow of $185 million from operating activities in Q1 2025, compared to $171 million in the prior-year quarter, with $134 million in cash and cash equivalents and $3.88 billion of long-term debt as of March 31, 2025 [8]

Core Insights - Light & Wonder reported revenue of $774 million for the quarter ended March 2025, reflecting a 2.4% increase year-over-year, but a revenue surprise of -4.28% compared to the Zacks Consensus Estimate of $808.58 million [1] - The company's EPS was $1.35, up from $0.93 in the same quarter last year, resulting in an EPS surprise of +15.38% against the consensus estimate of $1.17 [1] Revenue Performance - SciPlay revenue was $202 million, below the average estimate of $222.59 million, representing a year-over-year decline of -1.9% [4] - Gaming revenue reached $495 million, slightly below the average estimate of $511.28 million, with a year-over-year increase of +4% [4] - iGaming revenue was reported at $77 million, also below the average estimate of $81.40 million, showing a year-over-year growth of +4.1% [4] AEBITDA Metrics - AEBITDA for Gaming was $254 million, closely matching the average estimate of $254.30 million [4] - AEBITDA for Corporate was reported at -$34 million, better than the average estimate of -$38.93 million [4] - AEBITDA for iGaming was $27 million, slightly above the average estimate of $26.78 million [4] - AEBITDA for SciPlay was $64 million, below the average estimate of $69.06 million [4] Stock Performance - Light & Wonder shares have returned +20.7% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - Light & Wonder reported quarterly earnings of $1.35 per share, exceeding the Zacks Consensus Estimate of $1.17 per share, and showing an increase from $0.93 per share a year ago, resulting in an earnings surprise of 15.38% [1] - The company posted revenues of $774 million for the quarter ended March 2025, which was 4.28% below the Zacks Consensus Estimate, but an increase from $756 million year-over-year [2] - Light & Wonder has surpassed consensus EPS estimates in all four of the last quarters, while it has topped consensus revenue estimates two times during the same period [2] 分组2 - The stock has gained approximately 8.7% since the beginning of the year, contrasting with a decline of 4.7% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.50 on revenues of $863.51 million, and for the current fiscal year, it is $5.72 on revenues of $3.45 billion [7] - The Zacks Industry Rank indicates that the Gaming industry is currently in the bottom 44% of over 250 Zacks industries, suggesting potential underperformance compared to the top 50% [8]