Brightstar Lottery (NYSE:BRSL) Issues Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Brightstar Lottery (NYSE:BRSL) released its earnings results on Tuesday. The company reported $0.11 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.12, FiscalAI reports. Brightstar Lottery had a net margin of 10.05% and a return on equity of 10.99%. The business had revenue of $584.00 million during the quarter.

Here are the key takeaways from Brightstar Lottery’s conference call:

• Second-quarter profitability exceeded expectations: adjusted EBITDA rose 4% to $286 million, supported by 1.5% global same-store sales growth, favorable U.S. mix, cost savings, and expense recoveries.
• Brightstar reaffirmed its 2026 outlook and expects organic revenue growth to accelerate to approximately 4% in the third quarter, aided by product sales, the Italy B2C launch, and easier comparisons following the U.K. transition.
• Digital growth remains a major catalyst: iLottery wagers increased 22% in the first half, while the enhanced Italy MyLotteries PLAY app, upgraded terminals at more than 33,000 locations, and 23,000 recruited retailers are intended to drive further customer adoption. São Paulo’s digital lottery is also live, with retail operations planned for later this year.
• Cash generation and capital allocation improved after the final $1.7 billion Italy Lotto license payment; leverage was 3.24 times at quarter-end, $140 million had been returned to shareholders year to date, and management cited potential for more than $400 million in annual free cash flow after the current peak CapEx cycle.
• Management expects third-quarter adjusted EBITDA to be roughly in line with the first two quarters and slightly below the prior year, reflecting continued growth investments and difficult comparisons against a $1.8 billion Powerball jackpot in the year-ago period. Mega Millions sales also remain below historical levels following its move to a $5 ticket price.

Brightstar Lottery Stock Down 1.9%

Shares of BRSL stock traded down $0.21 on Thursday, reaching $11.09. The stock had a trading volume of 1,928,197 shares, compared to its average volume of 1,555,324. The company has a quick ratio of 0.84, a current ratio of 0.88 and a debt-to-equity ratio of 1.79. The stock’s 50-day moving average price is $11.01. The stock has a market capitalization of $2.07 billion, a price-to-earnings ratio of 8.53 and a beta of 1.03. Brightstar Lottery has a 12 month low of $9.90 and a 12 month high of $18.57.

Brightstar Lottery Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 18th will be paid a dividend of $0.23 per share. The ex-dividend date is Tuesday, August 18th. This represents a $0.92 annualized dividend and a dividend yield of 8.3%. Brightstar Lottery’s payout ratio is currently 70.77%.

Wall Street Analyst Weigh In

Several equities research analysts have commented on BRSL shares. Truist Financial cut their price target on shares of Brightstar Lottery from $14.00 to $13.00 and set a “hold” rating on the stock in a research report on Monday, July 20th. Argus cut Brightstar Lottery from a “buy” rating to a “hold” rating in a report on Monday, June 29th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Brightstar Lottery in a research report on Friday, July 10th. Stifel Nicolaus reiterated a “buy” rating and set a $19.00 target price (down from $20.00) on shares of Brightstar Lottery in a report on Wednesday, May 13th. Finally, BNP Paribas Exane initiated coverage on Brightstar Lottery in a research report on Thursday, May 14th. They set a “neutral” rating and a $12.60 price target for the company. Three equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $14.77.

Hedge Funds Weigh In On Brightstar Lottery

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Nomura Asset Management Co. Ltd. acquired a new stake in shares of Brightstar Lottery in the fourth quarter valued at approximately $31,000. Knott David M Jr bought a new position in shares of Brightstar Lottery during the 1st quarter worth approximately $32,000. NewEdge Advisors LLC acquired a new position in shares of Brightstar Lottery during the 4th quarter worth approximately $32,000. Rockefeller Capital Management L.P. acquired a new position in shares of Brightstar Lottery during the 4th quarter worth approximately $52,000. Finally, Empowered Funds LLC bought a new stake in Brightstar Lottery in the 4th quarter valued at $57,000. Institutional investors own 44.33% of the company’s stock.

Brightstar Lottery Company Profile

International Game Technology PLC operates and provides gaming technology products and services in North America, Europe, the Middle East, Africa, Asia-Pacific, Latin America, and the Caribbean. It operates in three segments: Global Lottery, Global Gaming, and Digital & Betting. The company designs, sells, operates, and leases a suite of point-of-sale machines that reconciles lottery funds between the retailer and lottery authority; provides online lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping, and delivery services.