Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Accel Entertainment (NYSE: ACEL) and the best and worst performers in the gaming solutions industry.
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 Q1. As a group, revenues missed analysts’ consensus estimates by 2.4%.
In light of this news, share prices of the companies have held steady as they are up 1.7% on average 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 $323.9 million, up 7.3% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and a decent beat of analysts’ video gaming terminals sold estimates.
Accel CEO Andy Rubenstein commented, “Our operating and financial momentum continues in 2025. In the first quarter, we generated our highest quarterly revenue since going public and strong Adjusted EBITDA as we expanded the number of locations we serve and increased the number of gaming terminals. In April, we opened Phase I of our casino and commenced horse racing operations at Fairmount Park Casino & Racing, which has already garnered solid customer visitation and play. This past Saturday, we hosted Fairmount Park’s “Derby Day at the Track.”
Accel Entertainment scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 5.4% since reporting and currently trades at $11.34.
Is now the time to buy Accel Entertainment? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $262.4 million, up 20.7% year on year, outperforming analysts’ expectations by 0.5%. The business had a strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Rush Street Interactive scored the fastest revenue growth among its peers. The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $12.50.
Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $774 million, up 2.4% year on year, falling short of analysts’ expectations by 4.3%. It was a softer quarter as it posted a miss of analysts’ Gaming revenue estimates.
As expected, the stock is down 11.9% since the results and currently trades at $82.51.
Read our full analysis of Light & Wonder’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 $1.41 billion, up 19.9% year on year. This number missed analysts’ expectations by 3.1%. It was a slower quarter as it also logged full-year EBITDA guidance missing analysts’ expectations.
DraftKings had the weakest full-year guidance update among its peers. The company reported 4.3 million users, up 26.5% year on year. The stock is up 1.7% since reporting and currently trades at $36.
Read our full, actionable report on DraftKings here, it’s free.
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 result met analysts’ expectations. More broadly, it was a mixed quarter as it also recorded a decent beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
The stock is down 6.6% since reporting and currently trades at $98.20.
Read our full, actionable report on Churchill Downs 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 2024, a quarter in November) have propped up markets, 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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