Brightstar Lottery (NYSE:BRSL) Releases Earnings Results

Brightstar Lottery (NYSE:BRSL) posted its earnings results on Tuesday. The company reported $0.10 EPS for the quarter, topping analysts’ consensus estimates of $0.02 by $0.08, FiscalAI reports. Brightstar Lottery had a return on equity of 10.47% and a net margin of 10.05%. The business had revenue of $607.00 million during the quarter.

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

• Operational growth accelerated: Q3 operational revenue growth reached 4%, up from approximately 1% in the first half, driven mainly by product sales—which more than doubled—and growth in other services.
• Full-year guidance was lowered: Brightstar now expects revenue of $2.435–$2.455 billion and Adjusted EBITDA of $1.14–$1.16 billion, citing weaker-than-expected U.S. jackpot comparisons, Italy disruptions and unfavorable foreign exchange.
• Margins and profitability remained resilient: Year-to-date Adjusted EBITDA rose 5% to $861 million, while margin excluding service revenue amortization improved 50 basis points to about 41.5%, supported by product mix, service growth and cost efficiencies.
• Management is investing in new growth channels: Italy’s digital gaming, self-service terminals and proximity services, along with continued iLottery expansion, are expected to support growth; executives cautioned that these businesses require upfront investment before profitability scales.
• Shareholder returns and financial flexibility remain priorities: Brightstar returned more than $200 million through dividends and buybacks through November 9, while reporting 3.3x net leverage and about $1.9 billion in liquidity.

Brightstar Lottery Price Performance

Brightstar Lottery stock traded down $0.40 during midday trading on Tuesday, reaching $9.62. 966,999 shares of the stock traded hands, compared to its average volume of 1,738,819. The stock’s fifty day moving average is $10.11 and its 200-day moving average is $11.52. Brightstar Lottery has a 12 month low of $9.10 and a 12 month high of $17.11. The stock has a market cap of $1.80 billion, a P/E ratio of 7.39, a PEG ratio of 4.13 and a beta of 1.15. The company has a quick ratio of 1.00, a current ratio of 1.10 and a debt-to-equity ratio of 2.16.

Analyst Ratings Changes

Several equities analysts have recently weighed in on BRSL shares. Truist Financial lowered their price objective on shares of Brightstar Lottery from $13.00 to $11.00 and set a “hold” rating on the stock in a research note on Tuesday, October 20th. Zacks Research raised shares of Brightstar Lottery from a “strong sell” rating to a “hold” rating in a report on Monday, July 13th. Stifel Nicolaus set a $19.00 target price on shares of Brightstar Lottery in a report on Friday, September 25th. Jefferies Financial Group upgraded shares of Brightstar Lottery from a “hold” rating to a “buy” rating and lifted their price target for the stock from $12.00 to $16.00 in a research note on Thursday, August 13th. Finally, Wall Street Zen downgraded shares of Brightstar Lottery from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $14.77.

Institutional Trading of Brightstar Lottery

A number of large investors have recently made changes to their positions in the business. BlackRock Inc. boosted its stake in Brightstar Lottery by 16.5% during the second quarter. BlackRock Inc. now owns 6,785,934 shares of the company’s stock worth $72,745,000 after buying an additional 961,306 shares during the period. Bank of America Corp DE raised its position in 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 purchasing an additional 151,839 shares during the period. Royce & Associates LP lifted its stake in Brightstar Lottery by 370.4% in the third quarter. Royce & Associates LP now owns 1,031,270 shares of the company’s stock worth $10,302,000 after purchasing an additional 812,040 shares during the last quarter. Orvieto Partners L.P. lifted its stake in Brightstar Lottery by 2.0% in the first quarter. Orvieto Partners L.P. now owns 753,596 shares of the company’s stock worth $9,601,000 after purchasing an additional 15,000 shares during the last quarter. Finally, Deutsche Bank AG boosted its position in shares of Brightstar Lottery by 1.0% during the second quarter. Deutsche Bank AG now owns 854,803 shares of the company’s stock valued at $9,163,000 after buying an additional 8,479 shares during the period. 44.33% of the stock is currently owned by institutional investors.

Brightstar Lottery Company Profile

Brightstar Lottery provides technology and services to government-sponsored and authorized lotteries. Its offerings include lottery systems and retail terminals, draw-based and instant games, digital lottery platforms, and operational and marketing support. The company serves lottery customers in North America and international markets, supporting sales through retail locations and online channels. Its systems and services help lotteries manage game operations, transactions, and player engagement.