Slot makers see stock prices plunge

LAS VEGAS, Nevada -- A lower-than-expected quarterly earnings announcement by WMS Industries sent the stock prices of slot machine companies to large declines Tuesday morning.

WMS, which said Monday its revenues and earnings per share would be far below projections, saw its stock price decline almost 16 percent this morning on New York Stock Exchange, down almost $6 a share.

Rival slot machine maker International Game Technology was down 5.5 percent while Bally Technologies saw its share price decline about 2 percent. Bally told investors a week ago that its earnings for the quarter that ended March 31 also would be below projections.

Analysts said they expected the decline following WMS's announcement, which came after the stock markets closed Monday.

"While we are concerned with the direction of earnings estimates and magnitude of revenue and margin cuts over the last few quarters, we believe long-term value-oriented investors should find the names interesting given below average valuations and out-year growth prospects," JP Morgan gaming analyst Joe Greff told investors.