Looking back on gaming solutions stocks' Q4 earnings, we examine this quarter's best and worst performers, including Churchill Downs (NASDAQ:CHDN) and its peers.
Gaming solution companies operate in a dynamic and evolving market, and the digital transformation of the gaming industry presents significant opportunities for innovation and growth, whether it be immersive slot machine terminals or mobile sports betting. However, the gaming solution industry is not without its challenges. Regulatory compliance is a crucial consideration as companies must navigate a complex and often fragmented regulatory landscape across different jurisdictions. Changes in regulations can impact product offerings, operational practices, and market access, requiring companies to maintain flexibility and adaptability in their business strategies. Additionally, the competitive nature of the industry necessitates continuous investment in research and development to stay ahead of competitors and meet evolving consumer demands.
The 9 gaming solutions stocks we track reported a decent Q4; on average, revenues beat analyst consensus estimates by 3.2%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, though the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the gaming solutions stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.4% on average since the previous earnings results.
Churchill Downs (NASDAQ:CHDN)
Famous for hosting the Kentucky Derby, Churchill Downs (NASDAQ:CHDN) operates a horse racing, online wagering, and gaming entertainment business in the United States.
Churchill Downs reported revenues of $561.2 million, up 16.9% year on year, topping analyst expectations by 1.5%. It was a good quarter for the company, with a decent beat of analysts' earnings and revenue estimates. The 'Live and Historical Racing' and 'Gaming' segments showed solid performance that individually beat Wall Street's Consensus estimates.
The stock is up 0.5% since the results and currently trades at $118.
Read our full report on Churchill Downs here, it's free.
Best Q4: Rush Street Interactive (NYSE:RSI)
Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE:RSI) is an operator of digital gaming platforms.
Rush Street Interactive reported revenues of $193.9 million, up 17.1% year on year, outperforming analyst expectations by 8.4%. It was an incredible quarter for the company, with an impressive beat of analysts' revenue estimates. That was driven by more monthly active users than expected in its U.S. and Canada geographies (160,000 vs estimates of 151,000).
Rush Street Interactive achieved the highest full-year guidance raise among its peers. The stock is up 11.2% since the results and currently trades at $5.98.
Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Everi (NYSE:EVRI)
Formed between the 2015 merger of Global Cash Access and Multimedia Games, Everi (NYSE:EVRI) is a producer of games and financial infrastructure for the casino and hospitality industries.
Everi reported revenues of $192 million, down 6.5% year on year, falling short of analyst expectations by 3.1%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
Everi had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 21.7% since the results and currently trades at $8.83.
Read our full analysis of Everi's results here.
Inspired (NASDAQ:INSE)
Specializing in digital casino gaming, Inspired (NASDAQ:INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.
Inspired reported revenues of $81.2 million, up 6% year on year, surpassing analyst expectations by 11%. It was a strong quarter for the company, with an impressive beat of analysts' earnings and revenue estimates.
Inspired pulled off the biggest analyst estimates beat among its peers. The stock is down 7% since the results and currently trades at $8.89.
Read our full, actionable report on Inspired here, it's free.
PlayAGS (NYSE:AGS)
Originating as a small slot machine business, PlayAGS (NYSE:AGS) provides electronic gaming machines, table game products, and digital gaming solutions to the casino and gaming industry.
PlayAGS reported revenues of $94.15 million, up 15.2% year on year, surpassing analyst expectations by 1.7%. It was a slower quarter for the company, with a miss of analysts' earnings estimates.
The stock is down 7.9% since the results and currently trades at $8.48.
Read our full, actionable report on PlayAGS here, it's free.
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