Light & Wonder (LNW) Up 5.1% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Light & Wonder has demonstrated strong financial performance with solid revenue growth, surpassing both top and bottom line estimates, indicating a resilient business model and portfolio strength [2][3][4]. Financial Performance - The company reported net income of $82 million or 90 cents per share for Q2 2024, a significant improvement from a net loss of $1 million or a loss of a penny per share in the same quarter last year [3]. - Total revenues increased to $818 million from $731 million year-over-year, exceeding the consensus estimate of $806 million [4]. - Gaming revenues reached $539 million, reflecting a 14% year-over-year growth, driven by strong sales of gaming machines and demand in gaming operations [5]. Revenue Breakdown - Services revenues rose to $526 million from $496 million in the prior-year quarter, while product sales increased to $292 million from $235 million [4]. - Revenues from SciPlay surged to $205 million, an 8% increase from $190 million, primarily due to the core social casino business [5]. - iGaming revenues grew to $74 million, up 6% year-over-year, supported by growth in North America [5]. Operational Metrics - Non-GAAP consolidated AEBITDA was $330 million, up from $281 million in the year-ago quarter, with an AEBITDA margin increase to 40% from 38% [6]. - Cash generated from operating activities for the first half of 2024 was $312 million, compared to $219 million in the same period last year [7]. Market Position and Outlook - Estimates for Light & Wonder have trended upward, with a consensus estimate shift of 5.97% over the past month [8]. - The company holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [10]. - Light & Wonder's aggregate VGM Score is B, reflecting a solid position in the investment strategy landscape [9].