SGMS - 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.
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Why Scientific Games Stock Popped Today