NEW YORK (AP) -- The planned retirement of CEO Joseph Wright appeared to outweigh Scientific Games Corp.'s third-quarter profit decline, with the stock tumbling Tuesday as investors tried to absorb the unexpected management change.

Shares of Scientific Games shed $4.28, or 24 percent, to $13.42 in morning trading.

Late Monday, the instant ticket and gaming equipment supplier said Wright plans to retire at the end of the year, but will continue to serve on its board. Wright will be succeeded by President and Chief Operating Officer Michael R. Chambrello, who will also serve as a director.

"We were surprised by Scientific Games' senior management changes, especially given the significant progress the company has made towards refocusing on cash flow and reducing expenses," Goldman Sachs analyst Betsy Gorton wrote in a note to clients.

She reaffirmed a "Neutral" rating and $17 price target.

Robert Evans of Craig Hallum Capital said he was pleased with the job Wright had been doing and was also surprised by the announced retirement, but didn't expect there to be transition issues.

Scientific Games is also trying to obtain an Italian instant ticket lottery concession. The company's consortium, which also includes Lottomatica SpA and the Federation of Italian Tobacconists, has a concession that is about to end and is bidding for a new one. Analysts have previously expressed concern that the 800 million euro ($1.19 billion) upfront fee, of which 160 million euros ($267 million) Scientific Games would be responsible for, could hurt net income and lead to higher interest expenses.

"We believe uncertainty as to the form and earnings from Italy remains, even if Scientific Games' consortium is awarded the sole concession, given the impact of the required 800 million euro upfront fee," Gorton said.

But Evans was more upbeat given that the consortium is likely to be the only instant ticket supplier to the Italian market, as other potential bidders are said to have dropped out of the process.

The company also reported after Monday's market close that third-quarter profit dropped 32 percent to $15.1 million, or 16 cents per share, from $22.2 million, or 23 cents per share. Operating revenues for the three months ended Sept. 30 slid 18 percent to $239.1 million from $291.9 million.

Adjusted profit was 24 cents per share, which removes a stock-based compensation charge and other items.

The results still beat Wall Street expectations. Analysts surveyed by Thomson Reuters, whose estimates generally exclude one-time items, forecast earnings of 18 cents per share on revenue of $237.9 million.