Wrapping up Q4 earnings, we look at the numbers and key takeaways for the gaming solutions stocks, including Light & Wonder (NASDAQ: LNW) 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 1.5%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.5% since the latest earnings results.
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 $797 million, up 3.5% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a solid beat of analysts’ EPS estimates but a miss of analysts’ iGaming revenue estimates.
The stock is down 11.3% since reporting and currently trades at $90.10.
Is now the time to buy Light & Wonder? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $254.2 million, up 31.1% year on year, outperforming analysts’ expectations by 3.4%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Rush Street Interactive achieved the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 24.7% since reporting. It currently trades at $10.02.
Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $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 and full-year revenue guidance missing analysts’ expectations significantly.
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 17.2% since the results and currently trades at $1.25.
Read our full analysis of PlayStudios’s results here.
DraftKings (NASDAQ: DKNG)
Getting its start in daily fantasy sports, DraftKings (NASDAQ: DKNG) is a digital sports entertainment and gaming company.
DraftKings reported revenues of $1.39 billion, up 13.2% year on year. This number missed analysts’ expectations by 0.9%. Aside from that, it was a strong quarter as it logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
DraftKings scored the highest full-year guidance raise among its peers. The company reported 4.8 million users, up 37.1% year on year. The stock is down 28.9% since reporting and currently trades at $33.
Read our full, actionable report on DraftKings here, it’s free.
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 $83 million, up 2.2% year on year. This print beat analysts’ expectations by 5.3%. It was a strong quarter as it also recorded a decent beat of analysts’ EPS and EBITDA estimates.
Inspired delivered the biggest analyst estimates beat among its peers. The stock is up 4% since reporting and currently trades at $8.68.
Read our full, actionable report on Inspired here, it’s free.
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