Latest news with #AndyRubenstein
Yahoo
21-05-2025
- Business
- Yahoo
Q1 Earnings Roundup: Accel Entertainment (NYSE:ACEL) And The Rest Of The Gaming Solutions Segment
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Accel Entertainment (NYSE:ACEL) and the best and worst performers in the gaming solutions industry. 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 7 gaming solutions stocks we track reported a mixed Q1. As a group, revenues missed analysts' consensus estimates by 2.4%. In light of this news, share prices of the companies have held steady as they are up 1.7% on average since the latest earnings results. 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 $323.9 million, up 7.3% year on year. This print exceeded analysts' expectations by 1.6%. Overall, it was a strong quarter for the company with a solid beat of analysts' EPS estimates and a decent beat of analysts' video gaming terminals sold estimates. Accel CEO Andy Rubenstein commented, 'Our operating and financial momentum continues in 2025. In the first quarter, we generated our highest quarterly revenue since going public and strong Adjusted EBITDA as we expanded the number of locations we serve and increased the number of gaming terminals. In April, we opened Phase I of our casino and commenced horse racing operations at Fairmount Park Casino & Racing, which has already garnered solid customer visitation and play. This past Saturday, we hosted Fairmount Park's 'Derby Day at the Track.' Accel Entertainment scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 5.4% since reporting and currently trades at $11.34. Is now the time to buy Accel Entertainment? Access our full analysis of the earnings results here, it's free. 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 $262.4 million, up 20.7% year on year, outperforming analysts' expectations by 0.5%. The business had a strong quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' adjusted operating income estimates. Rush Street Interactive scored the fastest revenue growth among its peers. The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $12.50. Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it's free. 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 $774 million, up 2.4% year on year, falling short of analysts' expectations by 4.3%. It was a softer quarter as it posted a miss of analysts' Gaming revenue estimates. As expected, the stock is down 11.9% since the results and currently trades at $82.51. Read our full analysis of Light & Wonder's results here. Getting its start in daily fantasy sports, DraftKings (NASDAQ:DKNG) is a digital sports entertainment and gaming company. DraftKings reported revenues of $1.41 billion, up 19.9% year on year. This number missed analysts' expectations by 3.1%. It was a slower quarter as it also logged full-year EBITDA guidance missing analysts' expectations. DraftKings had the weakest full-year guidance update among its peers. The company reported 4.3 million users, up 26.5% year on year. The stock is up 1.7% since reporting and currently trades at $36. Read our full, actionable report on DraftKings here, it's free. 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 $642.6 million, up 8.7% year on year. This result met analysts' expectations. More broadly, it was a mixed quarter as it also recorded a decent beat of analysts' EPS estimates but a miss of analysts' adjusted operating income estimates. The stock is down 6.6% since reporting and currently trades at $98.20. Read our full, actionable report on Churchill Downs here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. 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.
Yahoo
05-05-2025
- Business
- Yahoo
Accel Entertainment's (NYSE:ACEL) Q1: Beats On Revenue
Slot machine and terminal operator Accel Entertainment (NYSE:ACEL) announced better-than-expected revenue in Q1 CY2025, with sales up 7.3% year on year to $323.9 million. Its GAAP profit of $0.17 per share was 43.6% above analysts' consensus estimates. Is now the time to buy Accel Entertainment? Find out in our full research report. Revenue: $323.9 million vs analyst estimates of $318.8 million (7.3% year-on-year growth, 1.6% beat) EPS (GAAP): $0.17 vs analyst estimates of $0.12 (43.6% beat) Adjusted EBITDA: $49.51 million vs analyst estimates of $48.06 million (15.3% margin, 3% beat) Operating Margin: 8%, in line with the same quarter last year Video Gaming Terminals Sold: 27,180, up 1,859 year on year Market Capitalization: $901.3 million Accel CEO Andy Rubenstein commented, 'Our operating and financial momentum continues in 2025. In the first quarter, we generated our highest quarterly revenue since going public and strong Adjusted EBITDA as we expanded the number of locations we serve and increased the number of gaming terminals. In April, we opened Phase I of our casino and commenced horse racing operations at Fairmount Park Casino & Racing, which has already garnered solid customer visitation and play. This past Saturday, we hosted Fairmount Park's 'Derby Day at the Track.' Established in Illinois, Accel Entertainment (NYSE:ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Accel Entertainment's 23.6% annualized revenue growth over the last five years was impressive. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers. Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Accel Entertainment's recent performance shows its demand has slowed significantly as its annualized revenue growth of 8.4% over the last two years was well below its five-year trend. Accel Entertainment also discloses its number of video gaming terminals sold, which reached 27,180 in the latest quarter. Over the last two years, Accel Entertainment's video gaming terminals sold averaged 6.8% year-on-year growth. Because this number is lower than its revenue growth during the same period, we can see the company's monetization has risen. This quarter, Accel Entertainment reported year-on-year revenue growth of 7.3%, and its $323.9 million of revenue exceeded Wall Street's estimates by 1.6%. Looking ahead, sell-side analysts expect revenue to grow 5.4% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and implies its products and services will see some demand headwinds. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Accel Entertainment's operating margin has been trending down over the last 12 months and averaged 8.1% over the last two years. Although this result isn't good, the company's top-notch historical revenue growth suggests it ramped up investments to capture market share. We'll keep a close eye to see if this strategy pays off. This quarter, Accel Entertainment generated an operating profit margin of 8%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Accel Entertainment's spectacular 24.2% annual EPS growth over the last five years aligns with its revenue performance. This tells us its incremental sales were profitable. In Q1, Accel Entertainment reported EPS at $0.17, up from $0.09 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. We were impressed by how significantly Accel Entertainment blew past analysts' EPS expectations this quarter. We were also glad its number of video gaming terminals sold outperformed Wall Street's estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 2.7% to $11.05 immediately following the results. Indeed, Accel Entertainment had a rock-solid quarterly earnings result, but is this stock a good investment here? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
25-04-2025
- Business
- Yahoo
A Look Back at Gaming Solutions Stocks' Q4 Earnings: Accel Entertainment (NYSE:ACEL) Vs The Rest Of The Pack
Looking back on gaming solutions stocks' Q4 earnings, we examine this quarter's best and worst performers, including Accel Entertainment (NYSE:ACEL) 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 7 gaming solutions stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 1.4%. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.7% since the latest earnings results. 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 $317.5 million, up 6.9% year on year. This print exceeded analysts' expectations by 3.7%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts' video gaming terminals sold estimates but a miss of analysts' adjusted operating income estimates. Accel CEO Andy Rubenstein commented, 'I am very pleased to report that we ended 2024 on very strong footing, positioning us well as we enter 2025. We delivered another record quarter in terms of revenue, entered the Louisiana market with our acquisition of Toucan Gaming, and closed on our acquisition of FanDuel Sportsbook & Horse Racing, where we have already started construction on Phase I of our casino in anticipation of opening in the second quarter of 2025. We continue to strengthen our core and are expanding our offerings, which we believe will maintain attractive low-teens returns on capital, generate more free cash flow, and improve our trading multiples, making Accel a compelling investment opportunity.' The stock is down 5.5% since reporting and currently trades at $11.09. Read our full report on Accel Entertainment here, it's free. 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 $254.2 million, up 31.1% year on year, outperforming analysts' expectations by 3.4%. The business had a very strong quarter with an impressive beat of analysts' EBITDA estimates. Rush Street Interactive delivered the fastest revenue growth among its peers. The stock is down 10.6% since reporting. It currently trades at $11.89. Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it's free. Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games. PlayStudios reported revenues of $67.78 million, down 12.1% year on year, falling short of analysts' expectations by 1.4%. It was a disappointing quarter as it posted a miss of analysts' daily active users estimates. PlayStudios delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. The company reported 2.72 million monthly active users, down 19% year on year. As expected, the stock is down 17.9% since the results and currently trades at $1.24. Read our full analysis of PlayStudios's results here. 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 $642.6 million, up 8.7% year on year. This number met analysts' expectations. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts' EPS estimates but a miss of analysts' adjusted operating income estimates. The stock is down 15.1% since reporting and currently trades at $89.28. Read our full, actionable report on Churchill Downs here, it's free. 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 $83 million, up 2.2% year on year. This result surpassed analysts' expectations by 5.3%. It was a strong quarter as it also put up a decent beat of analysts' EPS and EBITDA estimates. Inspired scored the biggest analyst estimates beat among its peers. The stock is down 10.8% since reporting and currently trades at $7.45. Read our full, actionable report on Inspired here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. 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. Sign in to access your portfolio
