Accel Entertainment (NYSE:ACEL) Releases Earnings Results, Beats Expectations By $0.07 EPS

Accel Entertainment (NYSE:ACEL) issued its quarterly earnings results on Tuesday. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.07, Zacks reports. The company had revenue of $363.56 million during the quarter, compared to analyst estimates 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 Stock Performance

ACEL traded up $0.92 during midday trading on Wednesday, reaching $12.78. The company had a trading volume of 185,542 shares, compared to its average volume of 354,153. The business has a 50-day moving average of $11.28 and a two-hundred day moving average of $11.70. The company has a quick ratio of 2.40, a current ratio of 2.47 and a debt-to-equity ratio of 1.91. Accel Entertainment has a 1 year low of $9.55 and a 1 year high of $14.00. The company has a market cap of $1.04 billion, a P/E ratio of 19.07 and a beta of 1.09.

Accel Entertainment News Summary

Here are the key news stories impacting Accel Entertainment this week:

• Positive Sentiment: Q3 earnings were $0.25 per share, topping estimates of approximately $0.17–$0.18 and rising from $0.24 a year earlier. Zacks earnings report
• Positive Sentiment: Revenue hit a quarterly record of about $363.6 million, exceeding the $358.6 million consensus estimate. Accel also reported net income growth of 55% and adjusted EBITDA growth of 12% year over year. Third-quarter results release
• Neutral Sentiment: The company also published its earnings-call transcript and presentation. The supplied reports do not provide additional guidance or outlook details to assess beyond the quarterly results. Earnings call transcript

Wall Street Analyst Weigh In

ACEL has been the subject of a number of recent analyst reports. National Bank Financial set a $15.00 price objective on shares of Accel Entertainment in a report on Wednesday, August 5th. Wells Fargo & Company assumed coverage on Accel Entertainment in a research note on Friday, August 21st. They set an “equal weight” rating and a $14.00 target price on the stock. Wall Street Zen raised Accel Entertainment from a “hold” rating to a “buy” rating in a report on Saturday, October 24th. Citigroup reissued a “market outperform” rating on shares of Accel Entertainment in a report on Wednesday, August 5th. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of Accel Entertainment in a research note on Tuesday, September 22nd. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $14.60.

Insiders Place Their Bets

In related news, insider Derek Harmer sold 26,324 shares of Accel Entertainment stock in a transaction 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 transaction, the insider owned 170,929 shares in the company, valued at approximately $1,987,904.27. The trade was a 13.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders have sold a total of 40,036 shares of company stock worth $465,180 over the last quarter. 14.47% of the stock is owned by 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.