As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the gaming solutions industry, including PlayStudios (NASDAQ: MYPS) 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 Q3. As a group, revenues beat analysts’ consensus estimates by 1.7%.

Thankfully, share prices of the companies have been resilient as they are up 7.2% on average since the latest earnings results.

PlayStudios (NASDAQ: MYPS)

Founded by a team of former gaming industry executives, PlayStudios (NASDAQ: MYPS) offers free-to-play digital casino games.

PlayStudios reported revenues of $71.23 million, down 6.1% year on year. This print exceeded analysts’ expectations by 3.9%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.

Andrew Pascal, Chairman and Chief Executive Officer of PLAYSTUDIOS, commented, “Despite continued industry pressures, revenues and consolidated AEBITDA came in above consensus expectations this quarter. AEBITDA margins increased to 20.5% and we believe further gains are achievable. We made progress on our many strategic initiatives this quarter including raising the monetization of our games, expanding the Tetris Brand, a full integration of playAWARDS, furthering our DTC initiative, and evaluating new growth opportunities.”

PlayStudios delivered the weakest full-year guidance update of the whole group. The company reported 2.96 million monthly active users, down 78.4% year on year. Interestingly, the stock is up 26.8% since reporting and currently trades at $1.75.

Is now the time to buy PlayStudios? Access our full analysis of the earnings results here, it’s free.

Best Q3: Rush Street Interactive (NYSE: RSI)

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 $232.1 million, up 36.6% year on year, outperforming analysts’ expectations by 11.9%. The business had an incredible quarter with a solid beat of analysts’ EPS and EBITDA estimates.

Rush Street Interactive scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.4% since reporting. It currently trades at $11.65.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free.

Slowest Q3: Inspired (NASDAQ: INSE)

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 $78 million, down 20% year on year, falling short of analysts’ expectations by 4.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.

Inspired delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 1.7% since the results and currently trades at $10.32.

Read our full analysis of Inspired’s results here.

Accel Entertainment (NYSE: ACEL)

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 $302.2 million, up 5.1% year on year. This number beat analysts’ expectations by 1.7%. Taking a step back, it was a satisfactory quarter as it also produced a decent beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is up 6% since reporting and currently trades at $12.06.

Read our full, actionable report on Accel Entertainment here, it’s free.

Light & Wonder (NASDAQ: LNW)

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 $817 million, up 11.8% year on year. This number met analysts’ expectations. More broadly, it was a softer quarter as it recorded a significant miss of analysts’ EPS estimates.

The stock is down 6.8% since reporting and currently trades at $95.50.

Read our full, actionable report on Light & Wonder here, it’s free.

Market Update

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, a quarter in November) have kept 2024 stock markets frothy, 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.

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