Spotting Winners: PlayAGS (NYSE:AGS) And Gaming Solutions Stocks In Q4
Looking back on gaming solutions stocks' Q4 earnings, we examine this quarter's best and worst performers, including PlayAGS (NYSE:AGS) 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 9 gaming solutions stocks we track reported a decent Q4; on average, revenues beat analyst consensus estimates by 3.1%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but gaming solutions stocks have shown resilience, with share prices up 9.3% on average since the previous earnings results.
PlayAGS (NYSE:AGS)
Originating as a small slot machine business, PlayAGS (NYSE:AGS) provides electronic gaming machines, table game products, and digital gaming solutions to the casino and gaming industry.
PlayAGS reported revenues of $94.15 million, up 15.2% year on year, exceeding analysts' expectations by 1.7%. Despite the top-line beat, it was a weak quarter overall for the company with a miss of analysts' earnings estimates.
Commenting upon the Company's fourth quarter financial performance, AGS President and Chief Executive Officer David Lopez said, "The strength in our four quarter results was broad-based, with all three operating segments setting new quarterly records for revenue and Adjusted EBITDA. The quality and consistency of our recent financial performance is a true reflection of our incredibly talented and focused team, increasingly deep and diverse product offering across all three segments, and the improving efficiency and effectiveness of our execution."
The stock is up 23.8% since reporting and currently trades at $11.40.
Read our full report on PlayAGS 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 $217.4 million, up 33.9% year on year, outperforming analysts' expectations by 9.8%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates and full-year revenue guidance exceeding analysts' expectations.
Rush Street Interactive pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 56.6% 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: 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 $63.1 million, down 2.8% year on year, falling short of analysts' expectations by 2.8%. It was a weak quarter for the company with a miss of analysts' earnings estimates and a miss of analysts' Leisure revenue estimates.
Inspired had the weakest performance against analyst estimates in the group. As expected, the stock is down 1.7% since the results and currently trades at $9.29.
Read our full analysis of Inspired'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 $1.17 billion, up 52.7% year on year, surpassing analysts' expectations by 4.6%. More broadly, it was a decent quarter for the company with full-year revenue guidance exceeding analysts' expectations but a miss of analysts' earnings estimates.
DraftKings achieved the fastest revenue growth among its peers. The stock is down 10.8% since reporting and currently trades at $38.37.
Read our full, actionable report on DraftKings here, it's free.
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 $301.8 million, up 2.9% year on year, surpassing analysts' expectations by 2.1%. Taking a step back, it was a solid quarter for the company with a decent beat of analysts' earnings estimates and a decent beat of analysts' video gaming terminals sold estimates.
The stock is down 10% since reporting and currently trades at $10.46.
Read our full, actionable report on Accel Entertainment here, it's free.
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