Accel Entertainment (NYSE:ACEL – Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $0.25 EPS for the quarter, topping analysts’ consensus estimates of $0.18 by $0.07, Zacks reports. The firm had revenue of $363.56 million for the quarter, compared to the consensus estimate of $358.62 million. Accel Entertainment had a return on equity of 22.30% and a net margin of 4.08%.
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%
Shares of NYSE:ACEL opened at $11.89 on Wednesday. The company has a market capitalization of $965.51 million, a price-to-earnings ratio of 17.75 and a beta of 1.09. Accel Entertainment has a 12-month low of $9.55 and a 12-month high of $14.00. The business has a 50-day moving average price of $11.28 and a 200 day moving average price of $11.70. The company has a current ratio of 2.47, a quick ratio of 2.40 and a debt-to-equity ratio of 1.91.
Analyst Upgrades and Downgrades
A number of analysts have issued reports on the company. Wells Fargo & Company assumed coverage on Accel Entertainment in a research note on Friday, August 21st. They issued an “equal weight” rating and a $14.00 target price for the company. Weiss Ratings reiterated a “buy (b-)” rating on shares of Accel Entertainment in a report on Tuesday, September 22nd. Citigroup reissued a “market outperform” rating on shares of Accel Entertainment in a research note on Wednesday, August 5th. Truist Financial cut their price target 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. Finally, National Bank Financial set a $15.00 price target on shares of Accel Entertainment in a research report on Wednesday, August 5th. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Accel Entertainment has a consensus rating of “Moderate Buy” and a consensus price target of $14.60.
Read Our Latest Research Report on ACEL
Insider Buying and Selling
In other Accel Entertainment news, insider Derek Harmer sold 26,324 shares of the stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $11.63, for a total transaction of $306,148.12. Following the completion of the transaction, the insider owned 170,929 shares of the company’s stock, valued at $1,987,904.27. This trade represents a 13.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Insiders have sold a total of 40,036 shares of company stock valued at $465,180 over the last 90 days. Corporate insiders own 14.47% of the company’s stock.
More Accel Entertainment News
Here are the key news stories impacting Accel Entertainment this week:
- Positive Sentiment: Third-quarter revenue reached a record $364 million, above analysts’ estimate of about $359 million. Net income rose 55% year over year and adjusted EBITDA increased 12%, signaling growth in both sales and operating performance. Accel Entertainment Reports Record Third Quarter Revenue of $364 Million
- Positive Sentiment: Adjusted earnings per share were reported at $0.22, beating FactSet’s $0.18 estimate; another report cited $0.25 versus the Zacks consensus of $0.17. The differing figures may reflect different earnings measures or consensus estimates, but both reports indicate a beat. Q3 Adjusted EPS Results Accel Entertainment Beats Q3 Estimates
Accel Entertainment Company Profile
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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