Why Accel Entertainment Was a Huge Winner on Wednesday
Key Points
It posted double-digit gains on both the top and bottom lines.
Both line items topped the average analyst estimates, meanwhile.
- Motley Fool Issues Rare "Total Conviction" Buy Alert ›
Holding Accel Entertainment (NYSE:ACEL) in a stock portfolio was quite the accelerant for net worth on Wednesday. The company's share price popped by over 13% across the trading session, thanks to a strong quarterly earnings report that featured twin beats on analyst estimates.
A fine bet, investors believe
Accel, which concentrates on providing electronic casino-type games and ATMs for venues like bars and restaurants, published its third-quarter figures just after market close on Tuesday. These showed that the company's revenue grew by 10% year over year to almost $364 million. Net income not under generally accepted accounting principles (non-GAAP, or adjusted) flew 12% higher to more than $18 million ($0.22 per share).
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: Getty Images.
Those numbers were high enough to exceed the consensus analyst estimates. Prognosticators tracking Accel were modeling under $357 million for revenue, and $0.17 per share for adjusted net income.
Much of the growth came from simple volume. Accel's count of gaming machines deployed was 29,548, 7% higher year over year. Its tally for locations rose 6% to 4,705. The company said it experienced notable growth in markets such as Georgia, Nebraska, and Illinois, with the latter state's Fairmount Park Casino & Racing complex being a particularly strong performer.
Racing ahead
In its earnings release, Accel referred to diversifying its business into other markets, which could be a spur to increased growth in future periods. The same could be said for the dramatic expansion of its gaming footprint in Fairmount. I like the company's business model, which is straightforward and reliably produces decent profitability and positive cash flow, so I think investors were smart to snap up the stock following earnings.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again
In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. If you’d invested $5,000 then, you’d be sitting on $2,686,757 today.*
Now, for the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. It’s a key player in the $1.8 trillion space race, and with the stock recently sitting 20% off its highs, the window to get in early is closing fast.
Continue »
*Stock Advisor returns as of November 4, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
