Looking back on gaming solutions stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Accel Entertainment (NYSE: ACEL) 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 1.4%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.7% since the latest earnings results.

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 $317.5 million, up 6.9% year on year. This print exceeded analysts’ expectations by 3.7%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ video gaming terminals sold estimates but a miss of analysts’ adjusted operating income estimates.

Accel CEO Andy Rubenstein commented, “I am very pleased to report that we ended 2024 on very strong footing, positioning us well as we enter 2025. We delivered another record quarter in terms of revenue, entered the Louisiana market with our acquisition of Toucan Gaming, and closed on our acquisition of FanDuel Sportsbook & Horse Racing, where we have already started construction on Phase I of our casino in anticipation of opening in the second quarter of 2025. We continue to strengthen our core and are expanding our offerings, which we believe will maintain attractive low-teens returns on capital, generate more free cash flow, and improve our trading multiples, making Accel a compelling investment opportunity.”

The stock is down 5.5% since reporting and currently trades at $11.09.

Read our full report on Accel Entertainment 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 an impressive beat of analysts’ EBITDA estimates.

Rush Street Interactive delivered the fastest revenue growth among its peers. The stock is down 10.6% since reporting. It currently trades at $11.89.

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.

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 17.9% since the results and currently trades at $1.24.

Read our full analysis of PlayStudios’s results here.

Churchill Downs (NASDAQ: CHDN)

Famous for hosting the Kentucky Derby, Churchill Downs (NASDAQ: CHDN) operates a horse racing, online wagering, and gaming entertainment business in the United States.

Churchill Downs reported revenues of $642.6 million, up 8.7% year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is down 15.1% since reporting and currently trades at $89.28.

Read our full, actionable report on Churchill Downs 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 result surpassed analysts’ expectations by 5.3%. It was a strong quarter as it also put up a decent beat of analysts’ EPS and EBITDA estimates.

Inspired scored the biggest analyst estimates beat among its peers. The stock is down 10.8% since reporting and currently trades at $7.45.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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