Accel Entertainment (NYSE:ACEL) Announces Earnings Results

Accel Entertainment (NYSE:ACEL) announced its quarterly earnings data on Tuesday. The company reported $0.25 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.07, Zacks reports. The firm had revenue of $363.56 million during the quarter, compared to the consensus estimate of $358.62 million. Accel Entertainment had a return on equity of 23.23% and a net margin of 4.49%.

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 0.6%

ACEL traded down $0.08 during trading on Thursday, reaching $13.34. The company had a trading volume of 181,598 shares, compared to its average volume of 361,428. The business has a 50 day simple moving average of $11.31 and a 200-day simple moving average of $11.71. The company has a quick ratio of 2.40, a current ratio of 2.47 and a debt-to-equity ratio of 1.91. The stock has a market cap of $1.08 billion, a P/E ratio of 17.55 and a beta of 1.09. Accel Entertainment has a 52 week low of $9.55 and a 52 week high of $14.00.

Wall Street Analyst Weigh In

A number of research analysts have commented on ACEL shares. Wells Fargo & Company assumed coverage on Accel Entertainment in a research report on Friday, August 21st. They set an “equal weight” rating and a $14.00 price target for the company. National Bank Financial set a $15.00 price target on shares of Accel Entertainment in a research note on Wednesday, August 5th. Citigroup reiterated a “market outperform” rating on shares of Accel Entertainment in a report on Wednesday, August 5th. Citizens Jmp upped their price target on Accel Entertainment from $14.00 to $15.00 and gave the company a “market outperform” rating in a report on Wednesday, August 5th. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Accel Entertainment in a research note on Tuesday, September 22nd. Three research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $14.25.

Insider Buying and Selling at Accel Entertainment

In other Accel Entertainment news, insider Derek Harmer sold 26,324 shares of the business’s 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 owned 170,929 shares of the company’s stock, valued at approximately $1,987,904.27. The trade was a 13.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Mark T. Phelan sold 25,000 shares of Accel Entertainment stock in a transaction that occurred on Monday, November 2nd. The shares were sold at an average price of $12.00, for a total transaction of $300,000.00. Following the sale, the chief executive officer owned 216,464 shares of the company’s stock, valued at approximately $2,597,568. The trade was a 10.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 65,036 shares of company stock worth $765,180. Insiders own 14.47% of the company’s stock.

About Accel Entertainment

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.