As one of the sectors viewed in today’s economic climate as non-essential, the gaming industry is suffering sluggish sales and a shrinking market. WMS Industries, a company that manufactures slot machines, has paradoxically experienced a surge recently in its stock’s value, increasing company earnings, while becoming more efficient, and increasing its market share despite the general decline in the gaming market. There are some market analysts that predict that WMS will soon overtake International Game Technology as the industry’s leader.
Not all analysts agree, however. Harry Rady of Rady Asset Management believes that the stock has already absorbed the effect of WMS over performing. According to Rady,
“A slip backwards in results could send the stock tumbling.”
The expectation of new slot machine purchases by the casino industry is declining, according to a UNS survey. It was found that only 22% of game managers are planning on ordering new equipment this coming year, compared to close to 50% last year.