Accel Entertainment's 2024 Earnings: A Mixed Bag

Alright, fellow investors, let's dive into Accel Entertainment's (ACEL) full-year 2024 earnings report. Buckle up, because it's been a bit of a rollercoaster ride.

First things first, Accel Entertainment reported earnings for Q4 2024 on Feb 27, 2025. The company posted an EPS of $0.21, which, while meeting analysts' estimates, was a bit of a letdown compared to the previous quarter's surprise. In Q3 2024, Accel Entertainment reported an EPS of $0.22, which was a 22.22% surprise over the Zacks Consensus Estimate of $0.18 per share. So, what happened in Q4?

Well, it seems that Accel Entertainment's earnings miss in Q4 2024 might be a blip on the radar. The company has a history of beating earnings expectations, having surpassed consensus EPS estimates three times in the last four quarters. Plus, Accel Entertainment's stock has added about 11.1% since the beginning of the year, outperforming the S&P 500's gain of 1.3%. So, investors might be focusing on the company's long-term growth prospects rather than a single quarter's earnings miss.

Now, let's talk about the elephant in the room: Accel Entertainment's acquisitions. The company's acquisitions, such as Toucan Gaming and FanDuel Sportsbook & Horse Racing, have contributed to its financial performance and growth prospects. These acquisitions allowed Accel to enter new markets, increase its gaming terminals and locations, and drive revenue growth. In Q4 2024, Accel reported record revenues of $317.5 million, an increase of 6.9% compared to Q4 2023. For the full year 2024, Accel's revenues reached $1.2 billion, an increase of 5.2% compared to 2023.



However, Accel Entertainment's net income decreased by 47.5% in Q4 2024 compared to the same period in 2023. This decrease might be due to increased expenses related to the acquisitions and expansion. But, Accel's adjusted EBITDA increased by 6.2% in Q4 2024 compared to the same period in 2023, indicating that the company's operational efficiency and cost management are on track.

In conclusion, Accel Entertainment's 2024 earnings report is a mixed bag. While the company missed earnings expectations in Q4, its long-term growth prospects and revenue growth are encouraging. Accel Entertainment's acquisitions have contributed to its financial performance and expansion, and investors might be focusing on the company's strategic growth rather than a single quarter's earnings miss. As always, it's essential to monitor the company's earnings performance and any changes in analyst estimates to make informed investment decisions.