- ACEL
+0.08%
Slot machine and terminal operator Accel Entertainment (NYSE:ACEL) will be reporting results this Tuesday after market close. Here’s what to expect.
Accel Entertainment beat analysts’ revenue expectations last quarter, reporting revenues of $351.6 million, up 8.5% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and EBITDA in line with analysts’ estimates. It reported 28,353 video gaming terminals sold, up 4.3% year on year.
Is Accel Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Accel Entertainment’s revenue to grow 6.1% year on year, slowing from the 8.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Accel Entertainment has a history of exceeding Wall Street’s expectations.
Looking at Accel Entertainment’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 46.3%, beating analysts’ expectations by 7.1%, and Churchill Downs reported revenues up 4.9%, in line with consensus estimates. Rush Street Interactive traded down 13.4% following the results while Churchill Downs was also down 6.6%.
Read our full analysis of Rush Street Interactive’s results here and Churchill Downs’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.4% on average over the last month. Accel Entertainment is down 2.9% during the same time and is heading into earnings with an average analyst price target of $15.50 (compared to the current share price of $12.04).
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