Wrapping up Q4 earnings, we look at the numbers and key takeaways for the gaming solutions stocks, including PlayAGS (NYSE:AGS) 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 9 gaming solutions stocks we track reported a decent Q4; on average, revenues beat analyst consensus estimates by 3.2%. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and gaming solutions stocks have held roughly steady amidst all this, with share prices up 1.3% on average since the previous earnings results.

PlayAGS (NYSE:AGS)

Originating as a small slot machine business, PlayAGS (NYSE:AGS) provides electronic gaming machines, table game products, and digital gaming solutions to the casino and gaming industry.

PlayAGS reported revenues of $94.15 million, up 15.2% year on year, topping analyst expectations by 1.7%. It was a decent quarter for the company, with revenue and adjusted EBITDA exceeding analysts' expectations. The company's net leverage also declined to 3.2x at the end of the quarter, getting closer to the target range of 2.75x to 3.00x.

Commenting upon the Company's fourth quarter financial performance, AGS President and Chief Executive Officer David Lopez said, "The strength in our four quarter results was broad-based, with all three operating segments setting new quarterly records for revenue and Adjusted EBITDA. The quality and consistency of our recent financial performance is a true reflection of our incredibly talented and focused team, increasingly deep and diverse product offering across all three segments, and the improving efficiency and effectiveness of our execution."

The stock is down 3.7% since the results and currently trades at $8.87.

Read our full report on PlayAGS here, it's free.

Best Q4: 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 $193.9 million, up 17.1% year on year, outperforming analyst expectations by 8.4%. It was an incredible quarter for the company, with an impressive beat of analysts' earnings and revenue estimates.

Rush Street Interactive achieved the highest full-year guidance raise among its peers. The stock is up 21.6% since the results and currently trades at $6.54.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it's free.

Weakest Q4: Everi (NYSE:EVRI)

Formed between the 2015 merger of Global Cash Access and Multimedia Games, Everi (NYSE:EVRI) is a producer of games and financial infrastructure for the casino and hospitality industries.

Everi reported revenues of $192 million, down 6.5% year on year, falling short of analyst expectations by 3.1%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.

Everi had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 18.4% since the results and currently trades at $9.21.

Read our full analysis of Everi's results here.

Accel Entertainment (NYSE:ACEL)

Established in Illinois, Accel Entertainment (NYSE:ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Accel Entertainment reported revenues of $297.1 million, up 6.8% year on year, surpassing analyst expectations by 4.2%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and a solid beat of analysts' revenue estimates.

The stock is up 3.4% since the results and currently trades at $10.91.

Read our full, actionable report on Accel Entertainment 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 $770 million, up 12.9% year on year, surpassing analyst expectations by 3.5%. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates and a decent beat of analysts' revenue estimates.

The stock is down 4.2% since the results and currently trades at $92.57.

Read our full, actionable report on Light & Wonder here, it's free.

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