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

Brightstar Lottery (NYSE:BRSL) posted its quarterly earnings results on Tuesday. The company reported $0.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.01) by $0.12, FiscalAI reports. The business had revenue of $584.00 million for the quarter. Brightstar Lottery had a return on equity of 10.58% and a net margin of 6.24%.

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 Trading Up 10.1%

Shares of BRSL traded up $1.02 during trading hours on Tuesday, hitting $11.13. The company had a trading volume of 1,157,728 shares, compared to its average volume of 1,517,930. The company has a debt-to-equity ratio of 1.79, a current ratio of 0.88 and a quick ratio of 0.84. The company has a market cap of $2.08 billion, a P/E ratio of 13.42 and a beta of 1.03. Brightstar Lottery has a one year low of $9.90 and a one year high of $18.57. The business’s fifty day moving average price is $11.00.

Brightstar Lottery Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, June 11th. Stockholders of record on Thursday, May 28th were given a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 8.3%. The ex-dividend date of this dividend was Thursday, May 28th. Brightstar Lottery’s payout ratio is presently 110.84%.

Analyst Ratings Changes

A number of research firms recently weighed in on BRSL. BNP Paribas Exane initiated coverage on shares of Brightstar Lottery in a research note on Thursday, May 14th. They issued a “neutral” rating and a $12.60 price objective for the company. Truist Financial cut their target price 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. Zacks Research upgraded shares of Brightstar Lottery from a “strong sell” rating to a “hold” rating in a report on Monday, July 13th. Jefferies Financial Group reduced their price target on shares of Brightstar Lottery from $15.00 to $14.00 and set a “hold” rating for the company in a report on Monday, April 6th. Finally, Stifel Nicolaus reaffirmed a “buy” rating and issued a $19.00 price target (down from $20.00) on shares of Brightstar Lottery in a research report on Wednesday, May 13th. Three investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Brightstar Lottery presently has a consensus rating of “Hold” and an average target price of $14.77.

Hedge Funds Weigh In On Brightstar Lottery

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. TCW Group Inc. raised its holdings in Brightstar Lottery by 2.9% in the second quarter. TCW Group Inc. now owns 471,850 shares of the company’s stock worth $5,058,000 after purchasing an additional 13,500 shares in the last quarter. Empowered Funds LLC boosted its holdings in shares of Brightstar Lottery by 396.0% in the 1st quarter. Empowered Funds LLC now owns 18,134 shares of the company’s stock valued at $231,000 after buying an additional 14,478 shares in the last quarter. Bank of America Corp DE grew its position in shares of Brightstar Lottery by 17.3% in the 1st quarter. Bank of America Corp DE now owns 1,031,022 shares of the company’s stock worth $13,135,000 after buying an additional 151,839 shares during the last quarter. Sunbelt Securities Inc. bought a new position in shares of Brightstar Lottery during the 1st quarter worth approximately $194,000. Finally, Royal Bank of Canada raised its stake in shares of Brightstar Lottery by 19.5% during the 1st quarter. Royal Bank of Canada now owns 71,273 shares of the company’s stock worth $908,000 after acquiring an additional 11,636 shares in the last quarter. Hedge funds and other 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.