520035

Q1 Earnings Highs And Lows: Accel Entertainment (NYSE:ACEL) Vs The Rest Of The Gaming Solutions Stocks


Anthony Lee /
2024/07/09 3:29 am EDT

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at gaming solutions stocks, starting with Accel Entertainment (NYSE:ACEL).

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 growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and gaming solutions stocks have held roughly steady amidst all this, with share prices up 3.1% on average since the previous earnings results.

Accel Entertainment (NYSE:ACEL)

Established in Illinois, Accel Entertainment (NYSE:ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Accel Entertainment reported revenues of $301.8 million, up 2.9% year on year, topping analysts' expectations by 2.1%. It was a solid quarter for the company, with a decent beat of analysts' earnings estimates.

Accel CEO Andy Rubenstein commented, “I am happy to report that we delivered another solid quarter despite some unfavorable weather early on, once again demonstrating the strength of our business model. We are cautiously optimistic about legislative trends we are seeing outside of Illinois and continue to explore opportunities to expand our national footprint. Given the strength of our balance sheet and experience with locally-focused gaming markets, we continue to believe that we offer one of the best investments in the industry.”

Accel Entertainment Total Revenue

The stock is down 13.7% since the results and currently trades at $10.03.

Is now the time to buy Accel Entertainment? 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 pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 40% since the results and 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.

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

Read our full analysis of Inspired's results here.

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%. It was a decent quarter for the company, with full-year revenue guidance exceeding analysts' expectations but a miss of analysts' earnings estimates.

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

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

PlayStudios (NASDAQ:MYPS)

Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games.

PlayStudios reported revenues of $77.83 million, down 2.9% year on year, surpassing analysts' expectations by 2.5%. It was a mixed quarter for the company, with a miss of analysts' earnings estimates.

PlayStudios had the weakest full-year guidance update among its peers. The company reported 14.75 million monthly active users, up 12.8% year on year. The stock is down 9.4% since the results and currently trades at $2.11.

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

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.