Slot machine and terminal operator Accel Entertainment (NYSE: ACEL) will be announcing earnings results this Tuesday after market hours. Here’s what to expect.
Accel Entertainment beat analysts’ revenue expectations last quarter, reporting revenues of $341.4 million, up 7.5% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. It reported 27,950 video gaming terminals sold, up 6.1% 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 7.3% increase it recorded in the same quarter last year.
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 a history of exceeding Wall Street’s expectations.
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 41.1%, beating analysts’ expectations by 11.3%, and Churchill Downs reported revenues up 3.2%, in line with consensus estimates. Rush Street Interactive traded up 16.6% following the results while Churchill Downs was also up 10.1%.
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 7% on average over the last month. Accel Entertainment is up 11.5% 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 $12.43).
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