Light & Wonder Earnings: What To Look For From LNW

Gaming products and services provider Light & Wonder (NASDAQ:LNW) will be reporting earnings tomorrow afternoon. Here's what to look for.

Light & Wonder beat analysts' revenue expectations by 3.5% last quarter, reporting revenues of $770 million, up 12.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates.

Is Light & Wonder a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Light & Wonder's revenue to grow 7.1% year on year to $717.4 million, slowing from the 17.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.79 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Light & Wonder has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3.9% on average.

Looking at Light & Wonder's peers in the gaming solutions segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 33.9%, beating analysts' expectations by 9.8%, and Churchill Downs reported revenues up 5.6%, topping estimates by 4.4%. Rush Street Interactive traded up 18% following the results while Churchill Downs was also up 4.5%.

Read our full analysis of Rush Street Interactive's results here and Churchill Downs's results here.

Investors in the gaming solutions segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Light & Wonder is down 4.7% during the same time and is heading into earnings with an average analyst price target of $109.9 (compared to the current share price of $95.64).

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