Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Benchmark lowered its price target on Light & Wonder (NASDAQ:LNW) to $90.00 from $100.00 on Friday, while maintaining a Buy rating on the gaming technology company.
Light & Wonder reported second-quarter 2025 revenue of $809 million, falling short of the consensus estimate of $851.1 million. Despite the revenue miss, the company’s AEBITDA of $352 million slightly exceeded analyst expectations of $351.7 million.
The company expanded margins across all segments and grew net income by 16% year-over-year to $95 million, while adjusted NPATA increased 4% to $135 million. Management cited macroeconomic uncertainty, timing of international game sales, and cautious operator spending as factors behind the revenue shortfall.
The recently acquired Grover Gaming is performing ahead of plan, contributing $21 million in revenue during the quarter. Light & Wonder maintained its full-year guidance despite the quarterly revenue miss.
The company also announced plans to delist from the Nasdaq exchange by November 2025, though no further details about this decision were provided in the earnings report.
In other recent news, Light & Wonder Inc. reported its second-quarter earnings for 2025, revealing an earnings per share (EPS) of $1.58, which exceeded analysts’ estimates of $1.36 by 16.18%. However, the company’s revenue fell short of expectations, coming in at $809 million compared to the forecasted $851.13 million. Despite the revenue shortfall, the company’s strategic initiatives and market positioning were highlighted during the earnings call. Additionally, JPMorgan downgraded Light & Wonder’s stock rating from Overweight to Neutral, citing concerns about the company’s ability to achieve its original EBITDA targets through organic growth alone. The financial firm also lowered its price target for the company from $108.00 to $95.00. This downgrade reflects the inclusion of contributions from Light & Wonder’s Grover acquisition in its revised FY25 EBITDA guidance of $1.43 billion to $1.47 billion. These developments are significant for investors monitoring the company’s financial health and strategic direction.
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