Accel Entertainment and Golden Entertainment Stocks Trade Up, What You Need To Know

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the casino operator industry, including Golden Entertainment and its peers.

Casino operators enjoy limited competition because gambling is a highly regulated industry. These companies can also enjoy healthy margins and profits. Have you ever heard the phrase ‘the house always wins’? Regulation cuts both ways, however, and casinos may face stroke-of-the-pen risk that suddenly limits what they can or can't do and where they can do it. Furthermore, digitization is changing the game, pun intended. Whether it’s online poker or sports betting on your smartphone, innovation is forcing these players to adapt to changing consumer preferences, such as being able to wager anywhere on demand.

The 9 casino operator stocks we track reported a slower Q3. As a group, revenues beat analysts’ consensus estimates by 1.5%.

While some casino operator stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.6% since the latest earnings results.

Golden Entertainment

Founded in 2001, Golden Entertainment is a gaming company operating casinos, taverns, and distributed gaming platforms.

Golden Entertainment reported revenues of $154.8 million, down 4% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a softer quarter for the company with a miss of analysts’ Hotel revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Golden Entertainment delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 35.5% since reporting and currently trades at $28.77.

Read our full report on Golden Entertainment here, it’s free for active Edge members.

Best Q3: Boyd Gaming

Run by the Boyd family, Boyd Gaming is a diversified operator of gaming entertainment properties across the United States, offering casino games, hotel accommodations, and dining.

Boyd Gaming reported revenues of $1.00 billion, up 4.5% year on year, outperforming analysts’ expectations by 15.7%. The business performed better than its peers, but it was unfortunately a mixed quarter with an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ adjusted operating income estimates.

Boyd Gaming achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.2% since reporting. It currently trades at $78.02.

Is now the time to buy Boyd Gaming? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: MGM Resorts

Operating several properties on the Las Vegas Strip, MGM Resorts is a global hospitality and entertainment company known for its resorts and casinos.

MGM Resorts reported revenues of $4.25 billion, up 1.6% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted a miss of analysts’ Hotel revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 1.5% since the results and currently trades at $30.52.

Read our full analysis of MGM Resorts’s results here.

Monarch

Established in 1993, Monarch operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.

Monarch reported revenues of $142.8 million, up 3.6% year on year. This print lagged analysts' expectations by 1.7%. Aside from that, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ Dining revenue estimates.

Monarch had the weakest performance against analyst estimates among its peers. The stock is down 2.2% since reporting and currently trades at $95.12.

Read our full, actionable report on Monarch here, it’s free for active Edge members.

Red Rock Resorts

Founded in 1976, Red Rock Resorts operates a range of casino resorts and entertainment properties, primarily in the Las Vegas metropolitan area.

Red Rock Resorts reported revenues of $475.6 million, up 1.6% year on year. This number missed analysts’ expectations by 0.8%. Zooming out, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a miss of analysts’ Hotel revenue estimates.

The stock is down 8% since reporting and currently trades at $54.53.

Read our full, actionable report on Red Rock Resorts here, it’s free for active Edge members.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how MGM Resorts and the rest of the casino operator stocks fared in Q3.

Casino operators enjoy limited competition because gambling is a highly regulated industry. These companies can also enjoy healthy margins and profits. Have you ever heard the phrase ‘the house always wins’? Regulation cuts both ways, however, and casinos may face stroke-of-the-pen risk that suddenly limits what they can or can't do and where they can do it. Furthermore, digitization is changing the game, pun intended. Whether it’s online poker or sports betting on your smartphone, innovation is forcing these players to adapt to changing consumer preferences, such as being able to wager anywhere on demand.

The 9 casino operator stocks we track reported a slower Q3. As a group, revenues beat analysts’ consensus estimates by 1.5%.

While some casino operator stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.6% since the latest earnings results.

Weakest Q3: MGM Resorts

Operating several properties on the Las Vegas Strip, MGM Resorts is a global hospitality and entertainment company known for its resorts and casinos.

MGM Resorts reported revenues of $4.25 billion, up 1.6% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with a miss of analysts’ Hotel revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

"MGM Resorts delivered another quarter of consolidated net revenue growth as we benefit from our operational scale and diversity, highlighted by record third quarter results from MGM China," said Bill Hornbuckle, Chief Executive Officer & President of MGM Resorts International.

Unsurprisingly, the stock is down 1.5% since reporting and currently trades at $30.52.

Read our full report on MGM Resorts here, it’s free for active Edge members.

Best Q3: Boyd Gaming

Run by the Boyd family, Boyd Gaming is a diversified operator of gaming entertainment properties across the United States, offering casino games, hotel accommodations, and dining.

Boyd Gaming reported revenues of $1.00 billion, up 4.5% year on year, outperforming analysts’ expectations by 15.7%. The business performed better than its peers, but it was unfortunately a mixed quarter with an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ adjusted operating income estimates.

Boyd Gaming scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.2% since reporting. It currently trades at $78.02.

Is now the time to buy Boyd Gaming? Access our full analysis of the earnings results here, it’s free for active Edge members.

PENN Entertainment

Established in 1982, PENN Entertainment is a diversified American operator of casinos, sports betting, and entertainment venues.

PENN Entertainment reported revenues of $1.72 billion, up 4.8% year on year, falling short of analysts’ expectations by 0.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 15.8% since the results and currently trades at $13.77.

Read our full analysis of PENN Entertainment’s results here.

Monarch

Established in 1993, Monarch operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.

Monarch reported revenues of $142.8 million, up 3.6% year on year. This result came in 1.7% below analysts' expectations. Zooming out, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ Dining revenue estimates.

Monarch had the weakest performance against analyst estimates among its peers. The stock is down 2.2% since reporting and currently trades at $95.12.

Read our full, actionable report on Monarch here, it’s free for active Edge members.

Golden Entertainment

Founded in 2001, Golden Entertainment is a gaming company operating casinos, taverns, and distributed gaming platforms.

Golden Entertainment reported revenues of $154.8 million, down 4% year on year. This number lagged analysts' expectations by 1.3%. Overall, it was a softer quarter as it also logged a miss of analysts’ Hotel revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Golden Entertainment had the slowest revenue growth among its peers. The stock is up 35.5% since reporting and currently trades at $28.77.

Read our full, actionable report on Golden Entertainment here, it’s free for active Edge members.

Looking back on gaming solutions stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Inspired and its peers.

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 slower Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 1% on average since the latest earnings results.

Inspired

Specializing in digital casino gaming, Inspired is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.

Inspired reported revenues of $86.2 million, up 11.7% year on year. This print exceeded analysts’ expectations by 3.9%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ Virtual Sports revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

“Inspired delivered a strong quarter driven by strategic execution, digital expansion, and product innovation,” said Brooks Pierce, President and CEO of Inspired.

Interestingly, the stock is up 2.1% since reporting and currently trades at $7.78.

Read our full report on Inspired here, it’s free for active Edge members.

Best Q3: Rush Street Interactive

Specializing in online casino gaming and sports betting, Rush Street Interactive is an operator of digital gaming platforms.

Rush Street Interactive reported revenues of $277.9 million, up 19.7% year on year, outperforming analysts’ expectations by 4.3%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

Rush Street Interactive delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.4% since reporting. It currently trades at $17.01.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: PlayStudios

Founded by a team of former gaming industry executives, PlayStudios offers free-to-play digital casino games.

PlayStudios reported revenues of $57.65 million, down 19.1% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a miss of analysts’ daily active users and adjusted operating income estimates.

PlayStudios delivered the slowest revenue growth in the group. The company reported 2.21 million monthly active users, down 25.3% year on year. As expected, the stock is down 24.6% since the results and currently trades at $0.69.

Read our full analysis of PlayStudios’s results here.

Accel Entertainment

Established in Illinois, Accel Entertainment is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Accel Entertainment reported revenues of $329.7 million, up 9.1% year on year. This number surpassed analysts’ expectations by 0.5%. Zooming out, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is up 3.5% since reporting and currently trades at $10.28.

Read our full, actionable report on Accel Entertainment here, it’s free for active Edge members.

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 $841 million, up 2.9% year on year. This result lagged analysts' expectations by 1.1%. More broadly, it was a mixed quarter as it also produced a decent beat of analysts’ adjusted operating income estimates but a miss of analysts’ Social Gaming revenue estimates.

The stock is up 23.8% since reporting and currently trades at $90.91.

Read our full, actionable report on Light & Wonder here, it’s free for active Edge members.

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the gaming solutions industry, including Light & Wonder (NASDAQ:LNW) and its peers.

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 slower Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results.

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 $841 million, up 2.9% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ adjusted operating income estimates but a miss of analysts’ Social Gaming revenue estimates.

Interestingly, the stock is up 23.9% since reporting and currently trades at $90.91.

Is now the time to buy Light & Wonder? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Rush Street Interactive

Specializing in online casino gaming and sports betting, Rush Street Interactive is an operator of digital gaming platforms.

Rush Street Interactive reported revenues of $277.9 million, up 19.7% year on year, outperforming analysts’ expectations by 4.3%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

Rush Street Interactive scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.1% since reporting. It currently trades at $17.28.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: PlayStudios

Founded by a team of former gaming industry executives, PlayStudios offers free-to-play digital casino games.

PlayStudios reported revenues of $57.65 million, down 19.1% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a miss of analysts’ daily active users and adjusted operating income estimates.

PlayStudios delivered the slowest revenue growth in the group. The company reported 2.21 million monthly active users, down 25.3% year on year. As expected, the stock is down 20.5% since the results and currently trades at $0.72.

Read our full analysis of PlayStudios’s results here.

DraftKings

Getting its start in daily fantasy sports, DraftKings is a digital sports entertainment and gaming company.

DraftKings reported revenues of $1.14 billion, up 4.4% year on year. This print came in 5.6% below analysts' expectations. Overall, it was a softer quarter as it also logged full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

DraftKings had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is up 6.6% since reporting and currently trades at $29.80.

Read our full, actionable report on DraftKings here, it’s free for active Edge members.

Accel Entertainment

Established in Illinois, Accel Entertainment is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Accel Entertainment reported revenues of $329.7 million, up 9.1% year on year. This result surpassed analysts’ expectations by 0.5%. Zooming out, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is up 3.7% since reporting and currently trades at $10.29.

Read our full, actionable report on Accel Entertainment here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the gaming solutions industry, including PlayStudios and its peers.

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 slower Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results.

Weakest Q3: PlayStudios

Founded by a team of former gaming industry executives, PlayStudios offers free-to-play digital casino games.

PlayStudios reported revenues of $57.65 million, down 19.1% year on year. This print fell short of analysts’ expectations by 3%. Overall, it was a disappointing quarter for the company with a miss of analysts’ daily active users estimates and a significant miss of analysts’ adjusted operating income estimates.

PlayStudios delivered the slowest revenue growth of the whole group. The company reported 2.21 million monthly active users, down 25.3% year on year. Unsurprisingly, the stock is down 20.5% since reporting and currently trades at $0.72.

Read our full report on PlayStudios here, it’s free for active Edge members.

Best Q3: Rush Street Interactive

Specializing in online casino gaming and sports betting, Rush Street Interactive is an operator of digital gaming platforms.

Rush Street Interactive reported revenues of $277.9 million, up 19.7% year on year, outperforming analysts’ expectations by 4.3%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

Rush Street Interactive delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.1% since reporting. It currently trades at $17.28.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free for active Edge members.

DraftKings

Getting its start in daily fantasy sports, DraftKings is a digital sports entertainment and gaming company.

DraftKings reported revenues of $1.14 billion, up 4.4% year on year, falling short of analysts’ expectations by 5.6%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

DraftKings delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 6.6% since the results and currently trades at $29.80.

Read our full analysis of DraftKings’s results here.

Churchill Downs

Famous for hosting the Kentucky Derby, Churchill Downs operates a horse racing, online wagering, and gaming entertainment business in the United States.

Churchill Downs reported revenues of $683 million, up 8.7% year on year. This result topped analysts’ expectations by 1.2%. Zooming out, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.

The stock is up 3.5% since reporting and currently trades at $99.83.

Read our full, actionable report on Churchill Downs here, it’s free for active Edge members.

Accel Entertainment

Established in Illinois, Accel Entertainment is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Accel Entertainment reported revenues of $329.7 million, up 9.1% year on year. This print beat analysts’ expectations by 0.5%. More broadly, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is up 3.7% since reporting and currently trades at $10.29.

Read our full, actionable report on Accel Entertainment here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.