Accel Entertainment (NYSE:ACEL) Announces Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Accel beat quarterly estimates: EPS was $0.22 versus the $0.18 consensus, and revenue reached $363.6 million, above expectations. Revenue grew 10% year over year, while adjusted EBITDA rose 12% and net income increased 55%.
• Chicago expansion is nearing launch: Accel received its first city licenses and expects initial locations to open within weeks, with plans to add about 100–200 locations annually.
• Some projects and markets face pressure: Fairmount casino cost estimates rose 15%–20% above the previous $80 million forecast, while Nevada’s hold per day fell about 16% amid softer local demand and a lower-productivity mix.

Accel Entertainment (NYSE:ACEL - Get Free Report) posted its quarterly earnings results on Tuesday. The company reported $0.22 EPS for the quarter, beating analysts' consensus estimates of $0.18 by $0.04, FiscalAI reports. Accel Entertainment had a return on equity of 22.30% and a net margin of 4.08%. The business had revenue of $363.56 million during the quarter, compared to the consensus estimate of $358.62 million.

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 Price Performance

Shares of Accel Entertainment stock traded down $0.02 during trading on Tuesday, reaching $11.89. 361,322 shares of the company's stock were exchanged, compared to its average volume of 355,233. The company has a debt-to-equity ratio of 1.91, a quick ratio of 2.40 and a current ratio of 2.47. 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 $965.51 million, a P/E ratio of 17.75 and a beta of 1.07. The firm's 50-day moving average price is $11.29 and its 200 day moving average price is $11.70.

Insider Buying and Selling at Accel Entertainment

In related news, insider Derek Harmer sold 13,162 shares of the firm's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $11.60, for a total value of $152,679.20. Following the sale, the insider directly owned 157,767 shares of the company's stock, valued at $1,830,097.20. This trade represents a 7.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. In the last ninety days, insiders sold 40,036 shares of company stock worth $465,180. 14.47% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

ACEL has been the topic of several recent analyst reports. Truist Financial decreased their target price on shares of Accel Entertainment from $14.00 to $13.00 and set a "hold" rating on the stock in a report on Tuesday, October 20th. Citizens Jmp boosted their target price on shares of Accel Entertainment from $14.00 to $15.00 and gave the company a "market outperform" rating in a research report on Wednesday, August 5th. Citigroup reaffirmed a "market outperform" rating on shares of Accel Entertainment in a report on Wednesday, August 5th. Wells Fargo & Company initiated coverage on shares of Accel Entertainment in a report on Friday, August 21st. They set an "equal weight" rating and a $14.00 price target for the company. Finally, Wall Street Zen upgraded shares of Accel Entertainment from a "hold" rating to a "buy" rating in a research report on Saturday, October 24th. Four research 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 an average rating of "Moderate Buy" and a consensus price target of $14.60.

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.

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