The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how gaming solutions stocks fared in Q1, starting with PlayStudios (NASDAQ: MYPS).
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 7 gaming solutions stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 2.4%.
Luckily, gaming solutions stocks have performed well with share prices up 12.1% on average since the latest earnings results.
PlayStudios (NASDAQ: MYPS)
Founded by a team of former gaming industry executives, PlayStudios (NASDAQ: MYPS) offers free-to-play digital casino games.
PlayStudios reported revenues of $62.71 million, down 19.4% year on year. This print fell short of analysts’ expectations by 1.4%, but it was still a satisfactory quarter for the company with a solid beat of analysts’ adjusted operating income estimates.
PlayStudios pulled off the highest full-year guidance raise but had the slowest revenue growth of the whole group. The company reported 2.63 million monthly active users, down 24.7% year on year. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 24.1% since reporting and currently trades at $1.24.
Is now the time to buy PlayStudios? Access our full analysis of the earnings results here, it’s free.
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 $262.4 million, up 20.7% year on year, outperforming analysts’ expectations by 0.5%. The business had a strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Rush Street Interactive scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 24.1% since reporting. It currently trades at $15.04.
Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $774 million, up 2.4% year on year, falling short of analysts’ expectations by 4.3%. It was a softer quarter as it posted a miss of analysts’ Gaming revenue and EPS estimates.
Interestingly, the stock is up 7.8% since the results and currently trades at $101.
Read our full analysis of Light & Wonder’s results here.
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 $323.9 million, up 7.3% year on year. This number topped analysts’ expectations by 1.6%. It was a strong quarter as it also produced an impressive beat of analysts’ EPS estimates and a decent beat of analysts’ video gaming terminals sold estimates.
Accel Entertainment achieved the biggest analyst estimates beat among its peers. The stock is up 15.5% since reporting and currently trades at $12.43.
Read our full, actionable report on Accel Entertainment here, it’s free.
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 $60.4 million, down 3% year on year. This print lagged analysts' expectations by 10%. Overall, it was a slower quarter as it also logged a miss of analysts’ Leisure revenue estimates.
Inspired had the weakest performance against analyst estimates among its peers. The stock is up 20.5% since reporting and currently trades at $8.95.
Read our full, actionable report on Inspired here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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