TSX Composite Index (TXCX) Quote – Press Release

Slot machine and terminal operator Accel Entertainment (NYSE:ACEL) will be reporting results tomorrow after market hours. Here’s what you need to know.

Accel Entertainment beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $301.8 million, up 2.9% year on year. It was a solid quarter for the company, with a decent beat of analysts’ earnings estimates.

Is Accel Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Accel Entertainment’s revenue to grow 3% year on year to $301.3 million, slowing from the 28.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Accel Entertainment has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.2% on average.

Looking at Accel Entertainment’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Churchill Downs delivered year-on-year revenue growth of 15.9%, beating analysts’ expectations by 3.7%, and Royal Caribbean reported revenues up 16.7%, topping estimates by 1.6%. Churchill Downs’s stock price was unchanged after the results, while Royal Caribbean was down 6.7%.

Read our full analysis of Churchill Downs’s results here and Royal Caribbean’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 10.9% on average over the last month. Accel Entertainment is up 9.9% during the same time and is heading into earnings with an average analyst price target of $14 (compared to the current share price of $10.9).

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