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Accel Entertainment (ACEL) Reports Earnings Tomorrow: What To Expect

ACEL Cover Image

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

Accel Entertainment beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $309.4 million, up 5.7% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ earnings estimates but a miss of analysts’ operating margin estimates. It reported 25,757 total units, up 5.7% 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 3.3% year on year to $297 million, slowing from the 7.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.

Accel Entertainment Total Revenue

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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.2% on average.

Looking at Accel Entertainment’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Churchill Downs delivered year-on-year revenue growth of 9.8%, meeting analysts’ expectations, and Nike reported a revenue decline of 10.4%, in line with consensus estimates. Churchill Downs traded up 4.5% following the results while Nike was down 6.8%.

Read our full analysis of Churchill Downs’s results here and Nike’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 down 2.2% during the same time and is heading into earnings with an average analyst price target of $14.67 (compared to the current share price of $11.36).

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