Light & Wonder (LNW) Q3 Earnings Top Estimates

Core Insights - Light & Wonder (LNW) reported quarterly earnings of $1.81 per share, exceeding the Zacks Consensus Estimate of $1.42 per share, and showing an increase from $1.34 per share a year ago, resulting in an earnings surprise of +27.46% [1] - The company posted revenues of $841 million for the quarter ended September 2025, which was 2.51% below the Zacks Consensus Estimate, but an increase from $817 million year-over-year [2] - Light & Wonder has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once in the same period [2] Financial Performance - The company's earnings surprise of +27.46% indicates strong performance relative to expectations, while the revenue miss suggests challenges in meeting market forecasts [1][2] - Light & Wonder shares have declined approximately 15.1% year-to-date, contrasting with the S&P 500's gain of 15.1% [3] Future Outlook - The company's earnings outlook is critical for assessing future stock performance, with current consensus EPS estimates at $1.79 for the upcoming quarter and $5.25 for the current fiscal year, alongside projected revenues of $928.8 million and $3.37 billion respectively [7] - The Zacks Rank for Light & Wonder is currently 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions prior to the earnings release [6] Industry Context - The Gaming industry, to which Light & Wonder belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a relatively strong position within the market [8] - The performance of Light & Wonder may be influenced by broader industry trends, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]