Accel Entertainment (NYSE:ACEL – Get Free Report) issued its earnings results on Tuesday. The company reported $0.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.04, FiscalAI reports. Accel Entertainment had a return on equity of 22.30% and a net margin of 4.08%. The company had revenue of $363.56 million for the quarter, compared to the consensus estimate of $358.62 million.
Here are the key takeaways from Accel Entertainment’s conference call:
- Q3 results exceeded expectations: Revenue rose 10% year over year to $364 million, while Adjusted EBITDA increased 12% to $57 million and net income climbed 55% to $21 million. EBITDA growth outpaced revenue, reflecting operating leverage and route optimization.
- Accel reported broad-based growth across its markets, including 42% revenue growth in both Georgia and Nebraska, 20% growth in Louisiana, and an 84% increase in Fairmount gaming revenue. Illinois also delivered 7% revenue growth and 9% higher hold per day despite operating fewer locations and terminals.
- Chicago is moving toward launch after Accel received its first city licenses, with initial locations expected to go live within weeks. Management plans to add roughly 100–200 locations annually, with a long-term target of approximately 700–900 locations and about one-third of the market.
- The permanent Fairmount casino remains attractive, with expected annualized EBITDA raised to $20 million–$25 million, but estimated project costs are now 15%–20% above the prior $80 million forecast. Management said the higher costs should not affect the project timeline.
- Nevada showed signs of local-demand softness, particularly in Las Vegas, while the addition of lower-hold-per-day convenience-store locations diluted reported productivity. Nevada revenue still rose 25.4%, but hold per day declined about 16% as Accel works to improve the newer portfolio.
Accel Entertainment Stock Down 0.2%
NYSE:ACEL traded down $0.02 during midday trading on Tuesday, reaching $11.89. 361,322 shares of the stock traded hands, compared to its average volume of 355,233. The stock has a market capitalization of $965.51 million, a PE ratio of 17.75 and a beta of 1.07. Accel Entertainment has a 12-month low of $9.55 and a 12-month high of $14.00. The company has a debt-to-equity ratio of 1.91, a quick ratio of 2.40 and a current ratio of 2.47. The business has a 50-day moving average of $11.29 and a two-hundred day moving average of $11.70.
Insider Transactions at Accel Entertainment
In other news, insider Derek Harmer sold 26,324 shares of the company’s stock in a transaction on Friday, September 11th. The stock was sold at an average price of $11.63, for a total transaction of $306,148.12. Following the transaction, the insider directly owned 170,929 shares of the company’s stock, valued at approximately $1,987,904.27. This represents a 13.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders have sold 40,036 shares of company stock valued at $465,180 over the last 90 days. 14.47% of the stock is currently owned by insiders.
Wall Street Analyst Weigh In
Several research analysts have commented on ACEL shares. Truist Financial dropped their price objective on shares of Accel Entertainment from $14.00 to $13.00 and set a “hold” rating for the company in a report on Tuesday, October 20th. Wells Fargo & Company assumed coverage on shares of Accel Entertainment in a research note on Friday, August 21st. They issued an “equal weight” rating and a $14.00 target price on the stock. Weiss Ratings reissued a “buy (b-)” rating on shares of Accel Entertainment in a research note on Tuesday, September 22nd. National Bank Financial set a $15.00 price objective on shares of Accel Entertainment in a report on Wednesday, August 5th. Finally, Citizens Jmp upped their target price on Accel Entertainment from $14.00 to $15.00 and gave the stock a “market outperform” rating in a report on Wednesday, August 5th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $14.60.
View Our Latest Research Report on Accel Entertainment
About Accel Entertainment
Accel Entertainment, Inc is a distributed gaming operator that provides regulated gaming services and equipment to non-casino businesses. The company places and operates gaming terminals in locations such as bars, restaurants, taverns, convenience stores, truck stops, and fraternal or veterans organizations, allowing these establishments to offer legal gaming without operating a traditional casino.
Accel manages the installation, maintenance, monitoring, and regulatory compliance of its gaming equipment.
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