Accel Entertainment (ACEL) Q3 earnings report preview: what to look for

What happened

Accel Entertainment, a slot machine and terminal operator, is scheduled to report third-quarter earnings Tuesday after the market closes. Analysts expect revenue to grow 8.7% year over year, while estimates were generally reconfirmed over the past 30 days. Last quarter, revenue rose 9.6% to $368.1 million.

Confirmed

Global impact / market context

The report will show whether revenue growth is keeping pace with the 8.7% analysts expect and whether the company can continue its recent performance. A result above or below expectations could influence investor views of future sales and the company’s ability to expand its terminal business.

Analyst inference

Last quarter, Accel exceeded analysts’ revenue, earnings per share, and EBITDA estimates; EBITDA is a measure of operating performance before interest, taxes, depreciation, and amortization. Analysts have generally maintained their current estimates, while the article notes one peer’s revenue growth missed expectations slightly.

Confirmed

What to watch

1. Compare reported third-quarter revenue with analysts’ expected 8.7% year-over-year growth; a shortfall could indicate sales are slowing relative to the prior-year comparison. Analyst inference
2. Check whether earnings per share and EBITDA beat expectations again; these measures help show profit attributable to shareholders and operating performance before several expenses. Analyst inference
3. Look for updates on video gaming terminals, after last quarter’s reported sales of 29,281 terminals, up 6.9% year over year. Confirmed

Evidence

• stockstory.org