Earnings To Watch: Accel Entertainment (ACEL) Reports Q1 Results Tomorrow

Jabin Bastian /
2024/05/07 3:01 am EDT

Slot machine and terminal operator Accel Entertainment (NYSE:ACEL) will be announcing earnings results tomorrow afternoon. Here's what investors should know.

Accel Entertainment beat analysts' revenue expectations by 4.2% last quarter, reporting revenues of $297.1 million, up 6.8% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' revenue and earnings estimates.

Is Accel Entertainment a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Accel Entertainment's revenue to be flat year on year at $295.8 million, slowing from the 48.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.

Accel Entertainment Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Accel Entertainment has missed Wall Street's revenue estimates twice over the last two years.

Looking at Accel Entertainment's peers in the gaming solutions segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 33.9%, beating analysts' expectations by 9.8%, and Churchill Downs reported revenues up 5.6%, topping estimates by 4.4%. Rush Street Interactive traded up 18% following the results while Churchill Downs was also up 4.5%.

Read our full analysis of Rush Street Interactive's results here and Churchill Downs's results here.

Investors in the gaming solutions segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Accel Entertainment's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $14 (compared to the current share price of $11.77).

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