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Q1 Earnings Highlights: Light & Wonder (NASDAQ:LNW) Vs The Rest Of The Gaming Solutions Stocks


Jabin Bastian /
2024/07/10 4:51 am EDT

Looking back on gaming solutions stocks' Q1 earnings, we examine this quarter's best and worst performers, including Light & Wonder (NASDAQ:LNW) 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 8 gaming solutions stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 3.3%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and gaming solutions stocks have held roughly steady amidst all this, with share prices up 1.9% on average since the previous earnings results.

Light & Wonder (NASDAQ:LNW)

With names as crazy as Ultimate Fire Link Power 4 for its products, Light & Wonder (NASDAQ:LNW) is a gaming company supplying the casino industry with slot machines, table games, and digital games.

Light & Wonder reported revenues of $756 million, up 12.8% year on year, exceeding analysts' expectations by 5.4%. Overall, it was a very strong quarter for the company with a decent beat of analysts' earnings estimates and a narrow beat of analysts' Gaming revenue estimates.

Light & Wonder Total Revenue

The stock is up 7.4% since reporting and currently trades at $103.64.

Is now the time to buy Light & Wonder? Access our full analysis of the earnings results here, it's free.

Best Q1: 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 $217.4 million, up 33.9% year on year, outperforming analysts' expectations by 9.8%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates and full-year revenue guidance exceeding analysts' expectations.

Rush Street Interactive Total Revenue

Rush Street Interactive scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 40% since reporting. It currently trades at $8.96.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it's free.

Weakest Q1: 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 $63.1 million, down 2.8% year on year, falling short of analysts' expectations by 2.8%. It was a weak quarter for the company with a miss of analysts' earnings estimates and Leisure revenue estimates.

Inspired had the weakest performance against analyst estimates in the group. As expected, the stock is down 5.5% since the results and currently trades at $8.93.

Read our full analysis of Inspired's results here.

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 $189.3 million, down 5.5% year on year, in line with analysts' expectations. Looking more broadly, it was a weak quarter for the company with a miss of analysts' earnings estimates.

Everi had the slowest revenue growth among its peers. The stock is up 10.6% since reporting and currently trades at $8.95.

Read our full, actionable report on Everi here, it's free.

DraftKings (NASDAQ:DKNG)

Getting its start in daily fantasy sports, DraftKings (NASDAQ:DKNG) is a digital sports entertainment and gaming company.

DraftKings reported revenues of $1.17 billion, up 52.7% year on year, surpassing analysts' expectations by 4.6%. Looking more broadly, it was a decent quarter for the company with full-year revenue guidance exceeding analysts' expectations but a miss of analysts' earnings estimates.

DraftKings pulled off the fastest revenue growth among its peers. The stock is down 12.6% since reporting and currently trades at $37.61.

Read our full, actionable report on DraftKings here, it's free.

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