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Accel Entertainment Earnings: What To Look For From ACEL

ACEL Cover Image

Slot machine and terminal operator Accel Entertainment (NYSE: ACEL) will be announcing earnings results this Tuesday after market hours. Here’s what investors should know.

Accel Entertainment beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $323.9 million, up 7.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a decent beat of analysts’ video gaming terminals sold estimates. It reported 27,180 video gaming terminals sold, up 4.4% 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 7.5% year on year to $332.5 million, improving from the 5.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.

Accel Entertainment Total Revenue

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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.5% on average.

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 22.2%, beating analysts’ expectations by 7.6%, and Churchill Downs reported revenues up 4.9%, topping estimates by 1.4%. Rush Street Interactive traded up 25.7% following the results while Churchill Downs was also up 4.1%.

Read our full analysis of Rush Street Interactive’s results here and Churchill Downs’s results here.

Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Accel Entertainment is up 3.2% during the same time and is heading into earnings with an average analyst price target of $16 (compared to the current share price of $12.48).

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