Tomahawk, WI 04/01/2014 (Basicsmedia) – The International Game Technology (NYSE:IGT) stock has been mostly on a losing streak in the past one year having lost a little more than 25% of its value in the last six months. The stock reached record new 52-week lows of $13.99 this past week on Wednesday, March 27.

Earnings guidance has been reduced for FY2014 — the EPS guidance has been reduced from the $1.28 to $1.38 range to the $1 to $1.10 range. Earnings for 2Q2014 are expected to be between $0.17 to $0.19 per share.

The Las Vegas-based casino games developer also announced a reduction of 7% of its 5,000-strong workforce. The IGT CEO, Patti Hart, said that 2014 has been a difficult time for the casino industry.

Financial Outlook

International Game Technology (NYSE:IGT) enjoys high gross profit margins of 63.64% although decreased compared to last year. IGT also enjoys a high net profit margin of 14.63% which is good in comparison to the industry average.

IGT’s debt-to-equity ratio of 1.98 is quite high compared to the industry average.

IGT’s revenue growth has outpaced the industry average of 3.4%. IGT has shown good EPS figure increase of 29.2% in the most recent quarter on a year-to-year basis.

Tough Economic Environment

In a highly regulated market such as that for casinos, IGT’s future growth potential is inextricably linked with government policies.

While the company is strongly positioned in the traditional casino strongholds of Las Vegas, and Reno, IGT is constrained by the ban on online gambling in the U.S. However, IGT is involved in online gambling in the jurisdictions where that is allowed.

It has strong brands such as Wheel of Fortune progressive slot. It has internal presence in countries such as Argentina, Australia, Canada, China, Brazil and Mexico. Other nations where it has a presence include Russia, South Africa, Spain, Sweden and the United Kingdom.

With a revenue of $2 billion, International Game Technology (NYSE:IGT) should be able to grow if more countries and locations allowed traditional and online gambling operations.

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