Accel Entertainment (NYSE:ACEL) Issues Earnings Results, Beats Estimates By $0.04 EPS

Accel Entertainment (NYSE:ACEL) issued its quarterly earnings data on Tuesday. The company reported $0.22 EPS for the quarter, beating the consensus estimate of $0.18 by $0.04, FiscalAI reports. The business had revenue of $363.56 million during the quarter, compared to the consensus estimate of $358.62 million. Accel Entertainment had a net margin of 4.08% and a return on equity of 22.30%.

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 Trading Down 0.2%

Shares of NYSE:ACEL traded down $0.02 during midday trading on Tuesday, hitting $11.89. 361,322 shares of the stock were exchanged, compared to its average volume of 355,233. The business’s 50-day moving average price is $11.29 and its 200 day moving average price is $11.70. 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 stock has a market capitalization of $965.51 million, a price-to-earnings ratio of 17.75 and a beta of 1.07.

Analysts Set New Price Targets

ACEL has been the topic of a number of research reports. Citizens Jmp boosted their target price on shares of Accel Entertainment from $14.00 to $15.00 and gave the stock a “market outperform” rating in a research note on Wednesday, August 5th. Truist Financial lowered 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. National Bank Financial set a $15.00 price target on Accel Entertainment in a research note on Wednesday, August 5th. Wells Fargo & Company started coverage on Accel Entertainment in a report on Friday, August 21st. They set an “equal weight” rating and a $14.00 price objective on the stock. Finally, Wall Street Zen upgraded Accel Entertainment from a “hold” rating to a “buy” rating in a research report on Saturday, October 24th. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Accel Entertainment presently has a consensus rating of “Moderate Buy” and a consensus price target of $14.60.

Insider Transactions at Accel Entertainment

In related news, insider Derek Harmer sold 26,324 shares of Accel Entertainment stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $11.63, for a total transaction of $306,148.12. Following the sale, the insider directly owned 170,929 shares in the company, valued at $1,987,904.27. This trade represents a 13.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In the last three months, insiders have sold 40,036 shares of company stock valued at $465,180. 14.47% of the stock is owned by company insiders.

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.