As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at gaming solutions stocks, starting with Churchill Downs (NASDAQ:CHDN).
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 8 gaming solutions stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 3.3%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and gaming solutions stocks have held roughly steady amidst all this, with share prices up 4.9% on average since the previous earnings results.
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 $590.9 million, up 5.6% year on year, exceeding analysts' expectations by 4.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and a decent beat of analysts' Horse Racing revenue estimates.
The stock is up 15.1% since reporting and currently trades at $142.22.
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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 $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 delivered 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 51.6% since reporting. It currently trades at $9.70.
Weakest Q1: 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.
Inspired posted the weakest performance against analyst estimates in the group. As expected, the stock is down 6.7% since the results and currently trades at $8.82.
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%. Revenue aside, it was a solid quarter for the company with a decent beat of analysts' earnings estimates.
The stock is down 11.3% since reporting and currently trades at $10.31.
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 $756 million, up 12.8% year on year, surpassing analysts' expectations by 5.4%. Zooming out, it was a very strong quarter for the company with a decent beat of analysts' earnings estimates and a narrow beat of analysts' Gaming revenue estimates.
The stock is up 9.8% since reporting and currently trades at $105.95.
This content was originally published on Stock Story
