Ahead of the Bell: International Game Technology

NEW YORK (AP) -- Shares of International Game Technology are falling in premarket trading on Friday as the gaming equipment company's fiscal first-quarter results missed analysts' estimate.

IGT also said that its 2014 adjusted earnings will now come in at the low end of its prior guidance range.

On Thursday IGT reported quarterly adjusted earnings of 25 cents per share on revenue of $541.2 million. Analysts polled by FactSet expected earnings of 30 cents per share on revenue of $552.3 million.

IGT also said that it now anticipates fiscal 2014 adjusted earnings from continuing operations coming in at the low end of its range of $1.28 and $1.38 per share. Wall Street is looking for earnings of $1.29 per share.

Citi Investment Research's Michael Goltsman said in a client note that gaming operations sales declined 8 percent in the quarter. The North American installation base also dropped, but product sales rose 4 percent. The analyst said IGT had a solid cash flow despite the tough quarter and has outlined a cost saving program that will support margin recovery.

Goltsman said that the soft quarter presents a buying opportunity for investors.

The analyst kept a "Buy" rating and trimmed IGT's price target to $21 from $22.

Brian McGill of Janney Capital Markets said that he believes IGT's quarter was pressured by both company-specific and industry issues such as lackluster regional gaming revenue and increased competition.

McGill said he sees few catalysts to change the fundamental outlook. He maintained a "Neutral" rating.

IGT's stock dropped $1.80, or 10.2 percent, to $15.85 in premarket trading before the market open.