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 Q4, starting with Inspired (NASDAQ:INSE).
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 Q4. As a group, revenues beat analysts’ consensus estimates by 1.5%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.5% since the latest earnings results.
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 $83 million, up 2.2% year on year. This print exceeded analysts’ expectations by 5.3%. Overall, it was a strong quarter for the company with a decent beat of analysts’ EPS and EBITDA estimates.
“We ended the year with a fourth quarter that reflects the strength and resilience of our diversified business model," said Lorne Weil, Executive Chairman of Inspired.
Inspired achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 6.7% since reporting and currently trades at $8.91.
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 $254.2 million, up 31.1% year on year, outperforming analysts’ expectations by 3.4%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates.
Rush Street Interactive pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 16.7% since reporting. It currently trades at $11.08.
Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games.
PlayStudios reported revenues of $67.78 million, down 12.1% year on year, falling short of analysts’ expectations by 1.4%. It was a disappointing quarter as it posted a miss of analysts’ daily active users estimates and full-year revenue guidance missing analysts’ expectations significantly.
PlayStudios delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. The company reported 2.72 million monthly active users, down 19% year on year. As expected, the stock is down 8.3% since the results and currently trades at $1.39.
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 $797 million, up 3.5% year on year. This print met analysts’ expectations. More broadly, it was a satisfactory quarter as it also logged a solid beat of analysts’ EPS estimates but a miss of analysts’ iGaming revenue estimates.
The stock is down 2.7% since reporting and currently trades at $98.83.
Famous for hosting the Kentucky Derby, Churchill Downs (NASDAQ:CHDN) operates a horse racing, online wagering, and gaming entertainment business in the United States.
Churchill Downs reported revenues of $624.2 million, up 11.2% year on year. This result topped analysts’ expectations by 0.9%. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but a miss of analysts’ Horse Racing revenue estimates.
The stock is down 6.4% since reporting and currently trades at $111.91.
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