Slot machine and terminal operator Accel Entertainment (NYSE: ACEL) will be announcing earnings results tomorrow after market hours. Here’s what to look for.
Accel Entertainment beat analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $317.5 million, up 6.9% year on year. It was 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. It reported 26,346 video gaming terminals sold, up 5% year on year.
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 grow 5.6% year on year to $318.8 million, improving from the 2.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.
Analysts covering the company have generally 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 consumer discretionary 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 20.7%, beating analysts’ expectations by 0.5%, and Churchill Downs reported revenues up 8.7%, in line with consensus estimates. Rush Street Interactive traded down 5.4% following the results while Churchill Downs was also down 16.3%.
Read our full analysis of Rush Street Interactive’s results here and Churchill Downs’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 8.8% on average over the last month. Accel Entertainment is up 8.6% 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 $10.65).
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