Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Rush Street Interactive (NYSE:RSI) and the best and worst performers in the gaming solutions industry.

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%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. The beginning of 2024 saw mixed inflation data, however, leading to more volatile stock performance, and while some of the gaming solutions stocks have fared somewhat better than others, they collectively declined, with share prices falling 1% on average since the previous earnings results.

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, topping analyst expectations by 8.4%. It was an incredible quarter for the company, with an impressive beat of analysts' revenue estimates. That was driven by more monthly active users than expected in its U.S. and Canada geographies (160,000 vs estimates of 151,000).

Richard Schwartz, Chief Executive Officer of RSI, said, “We concluded 2023 with a fourth quarter that produced records in both revenues and adjusted EBITDA. For the year, we grew revenue to $691 million on strong customer engagement and retention. At the same time, we improved our Adjusted EBITDA by $100 million compared to the prior year. These results and the ensuing momentum have carried into strong guidance for the new year, reflecting our longstanding customer-centric principles and obsession with developing innovative and differentiated user experiences.

Rush Street Interactive scored the highest full-year guidance raise of the whole group. 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.

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, outperforming analyst expectations by 4.2%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.

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

Is now the time to buy Accel Entertainment? 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.

In a blockbuster deal, Everi will be merging with International Game Technology's (IGT) Global Gaming and PlayDigital businesses. IGT is one of the largest slot machine companies in the U.S., and the deal is valued at $6.2 billion including debt.

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.

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 and revenue estimates, driven by outperformance in its gaming segment ($496 million of revenue vs estimates of $470 million). On the other hand, its free cash flow fell short.

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.

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 $77.11 million, down 2.9% year on year, surpassing analyst expectations by 2.4%. It was a decent quarter for the company, with revenue and adjusted EBITDA outperforming Wall Street's estimates. On the other hand, its revenue growth regrettably slowed.

PlayStudios had the weakest full-year guidance update among its peers. The company reported 13.29 million monthly active users, up 15.9% year on year. The stock is up 14.8% since the results and currently trades at $2.52.

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

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