Why Scientific Games Stock Popped Today
Shares of Scientific Games (NASDAQ: SGMS), which provides gambling products and services to casinos, were up 12.7% as of 12:30 p.m. ET on Wednesday. The company capped off a strong year of growth with the announcement that it is shifting its strategy to unlock more value for shareholders.
Management plans to significantly pay down debt and repurchase shares. This comes on top of the current divestiture of its lottery and sports betting businesses, which could raise up to $7 billion in net cash proceeds.
The news comes on the heels of a strong finish to the year. Revenue from continuing operations grew 20% year over year to $580 million in the quarter. The bottom line also improved from a loss of $143 million in the year-ago quarter to a profit of $62 million in the fourth quarter.
Source Fool.com
