GTECH Corporation: Profit Soars at Lottery Operator GtechGtech Holdings Corp., the world's largest operator of lottery systems, posted a 40 percent jump in profit for its latest quarter, beating Wall Street estimates.
West Greenwich-based Gtech also raised its fiscal 2004 earnings estimates again and predicted fiscal 2005 earnings would beat analysts' expectations.
Net income for the third quarter ended Nov. 22 soared to $45.9 million, or 69 cents a share, from $32.8 million, or 58 cents a share, a year earlier.
However, the latest results included a gain of $3.3 million, or 5 cents a share, on a consolidation of the company's headquarters.
Excluding the gain, Gtech said it would have reported third-quarter earnings of 64 cents a share, better than the 63 cents a share predicted by analysts polled by Thomson First Call.
Revenue in the latest quarter was essentially flat at $254.9 million, compared with $256.5 million last year.
The company sees fourth-quarter earnings of 63 cents to 68 cents a share.
For the fiscal year ending Feb. 28, Gtech projects earnings of $2.75 to $2.80 a share. That estimate includes a 5-cent a share gain for the headquarters consolidation.
The company said in September that it anticipated fiscal 2004 earnings of $2.65 to $2.75 a share. The company initially forecast fiscal 2004 earnings of $2.50 to $2.60 last February.
For fiscal 2005, Gtech expects net income of $2.95 to $3.05 a share, on total revenue growth of 20 percent to 21 percent.
Wall Street had expected Gtech to earn 67 cents a share in the fourth quarter, $2.73 a share on revenue of $1.04 billion in fiscal 2004 and $2.89 a share in fiscal 2005.
Shares of Gtech closed Tuesday at $48.27, up 47 cents, or 1 percent, on the New York Stock Exchange.
