As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the gaming solutions industry, including Inspired (NASDAQ:INSE) and its peers.
Gaming solution companies operate in a dynamic and evolving market, and the digital transformation of the gaming industry presents significant opportunities for innovation and growth, whether it be immersive slot machine terminals or mobile sports betting. However, the gaming solution industry is not without its challenges. Regulatory compliance is a crucial consideration as companies must navigate a complex and often fragmented regulatory landscape across different jurisdictions. Changes in regulations can impact product offerings, operational practices, and market access, requiring companies to maintain flexibility and adaptability in their business strategies. Additionally, the competitive nature of the industry necessitates continuous investment in research and development to stay ahead of competitors and meet evolving consumer demands.
The 7 gaming solutions stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.
Thankfully, share prices of the companies have been resilient as they are up 9.5% on average since the latest earnings results.
Slowest Q3: Inspired (NASDAQ:INSE)
Specializing in digital casino gaming, Inspired (NASDAQ:INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.
Inspired reported revenues of $78 million, down 20% year on year. This print fell short of analysts’ expectations by 3.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
“Our third quarter results demonstrate the resilience of our diversified business model and our ability to successfully execute across our business segments,” said Lorne Weil, Executive Chairman of Inspired.
Inspired delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $10.12.
Read our full report on Inspired here, it’s free.
Best Q3: Rush Street Interactive (NYSE:RSI)
Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE:RSI) is an operator of digital gaming platforms.
Rush Street Interactive reported revenues of $232.1 million, up 36.6% year on year, outperforming analysts’ expectations by 11.9%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Rush Street Interactive scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 37.7% since reporting. It currently trades at $14.80.
Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free.
Light & Wonder (NASDAQ:LNW)
With names as crazy as Ultimate Fire Link Power 4 for its products, Light & Wonder (NASDAQ:LNW) is a gaming company supplying the casino industry with slot machines, table games, and digital games.
Light & Wonder reported revenues of $817 million, up 11.8% year on year, falling short of analysts’ expectations by 2.3%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ Social Gaming revenue estimates.
As expected, the stock is down 5.8% since the results and currently trades at $96.50.
Read our full analysis of Light & Wonder’s results here.
Churchill Downs (NASDAQ:CHDN)
Famous for hosting the Kentucky Derby, Churchill Downs (NASDAQ:CHDN) operates a horse racing, online wagering, and gaming entertainment business in the United States.
Churchill Downs reported revenues of $628.5 million, up 9.8% year on year. This number met analysts’ expectations. Taking a step back, it was a slower quarter as it produced a miss of analysts’ EPS and adjusted operating income estimates.
The stock is down 8.4% since reporting and currently trades at $122.89.
Read our full, actionable report on Churchill Downs here, it’s free.
PlayStudios (NASDAQ:MYPS)
Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games.
PlayStudios reported revenues of $71.23 million, down 6.1% year on year. This print came in 2.6% below analysts' expectations. Overall, it was a slower quarter as it also produced a miss of analysts’ daily active users estimates and a miss of analysts’ EPS estimates.
PlayStudios had the weakest full-year guidance update among its peers. The company reported 2.96 million monthly active users, down 15.9% year on year. The stock is up 31.9% since reporting and currently trades at $1.82.
Read our full, actionable report on PlayStudios here, it’s free.
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