Light & Wonder LNW reported strong fourth-quarter 2024 results, with the top and bottom lines beating the Zacks Consensus Estimate. The Las Vegas-based cross-platform games and entertainment company reported year-over-year revenue growth, exemplifying its portfolio strength and resilient business model.

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LNW’s Net Income

Net income in the reported quarter was $107 million or $1.2 per share compared with $66 million or 73 cents per share in the year-ago quarter. The increase in GAAP earnings was driven by top-line expansion and a gain on the sale of assets. Adjusted earnings per share came in at $1.42 per share, beating the Zacks Consensus Estimate by 34 cents.

In 2024, the company reported a net income of $336 million or $3.68 per share compared with $163 million or $1.75 per share in 2023.

LNW’s Revenues

Total revenues in the fourth quarter of 2024 rose to $797 million from $770 million in the prior-year quarter, propelled by healthy demand in all business verticals. The top line beat the consensus estimate of $795 million.

In 2024, the company reported total revenues of $3.2 billion, up from $2.9 billion in 2023.

Services revenues increased to $532 million from $515 million in the year-ago quarter, while product sales were $265 million, up from $255 million in the year-ago quarter. This is the 15th consecutive quarter of consolidated revenue growth for the company.

Gaming revenues were $515 million, up 4% year over year, driven by sales growth of Gaming Machines and Gaming operations. Demand for COSMIC, MURAL and HORIZON cabinets remains strong.

Revenues from SciPlay were $204 million, matching the figure of the year-ago quarter. Demand remains strong for the company’s social casino business. The average revenue per daily active user increased to $1.06 in the quarter, up 6% year over year. 

iGaming revenues increased to $78 million, up 11% from the year-ago quarter, driven by continued momentum in North America and Europe, as well as strong content launches.

Other Details

Non-GAAP consolidated AEBITDA was $315 million compared with $302 million in the year-ago quarter, driven by revenue growth and sustained margin strength across all businesses. AEBITDA margin remained flat at 39%.

LNW’s Cash Flow & Liquidity

In 2024, the company generated $632 million of cash from operating activities compared with $590 million in the year-ago period. In the fourth quarter, it generated $202 million in cash from operations compared to $167 million in the prior-year quarter.

As of Dec. 31, 2024, it had $196 million in cash and cash equivalents with $3.84 billion of long-term debt compared with respective tallies of $425 million or $3.85 billion in 2023.

LNW’s Zacks Rank

Light & Wonder currently carries a Zacks Rank #3 (Hold).

Key Picks

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Telephone and Data Systems, Inc. TDS carries a Zacks Rank of 2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 71.88%.

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