IGT the big winner



In terms of ship share, we believe IGT was the only winner in 1Q 2012, on a sequential basis.  The slot market remains super competitive with WMS and Konami particularly aggressive on pricing.  Q1 replacements were down slightly YoY to an estimated 14,900 units but used units are accounting for a bigger % of sales.  In Ohio, for example, ~15% of the units are used/participation.  Casinos are increasingly putting caps on participation units and showing a preference for preferring fixed fee and 80/20 deals vs. % coin in (WAP) type games in an effort to improve margins in a low growth environment. 


Here are the estimated CQ1 2012 market shares (based on shipped units):

  • IGT:  33%, up from 30% in CQ1 2011
  • WMS:  19%, down from 21% in CQ1 2011 despite aggressive pricing
  • BYI:  14%, unchanged YoY
  • KNM:  17%, down from 20% in CQ1 2011 
    • Konami was admittedly very aggressive on pricing in Q1
    • We believe Konami growth is stalling and they will likely be a share donor this year
  • MGAM:  2%, double the 1% in CQ1 2011
  • ALL:  11%, unchanged YoY (our guess until the company reports next quarter)


Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more