Accel Entertainment, Inc. ACEL reported impressive fourth-quarter 2023 results, with earnings and net revenues beating the Zacks Consensus Estimate. The top and the bottom lines increased year over year.
The company's quarterly results benefited from its intent focus on the local gaming market. Also, year-over-year growth in the number of locations and gaming terminals added to the uptrend. Accel intends to continue exploring opportunities across the country to expand its market reach while focusing on its shareholder value.
Following the announcement, shares of the company gained 1% in the after-hours trading session on Feb 28.
Inside the Headlines
In the quarter under review, adjusted earnings per share (EPS) were 26 cents, topping the Zacks Consensus Estimate of 17 cents by 52.9%. In the year-ago quarter, the company reported an adjusted EPS of 23 cents.
Accel Entertainment, Inc. Price, Consensus and EPS Surprise
Accel Entertainment, Inc. Price, Consensus and EPS Surprise
Accel Entertainment, Inc. price-consensus-eps-surprise-chart | Accel Entertainment, Inc. Quote
Total net revenues of $297.1 million beat the consensus mark of $286 million by 3.8%. The top line increased 6.8% on a year-over-year basis. The uptrend was backed by notable revenue contributions from Illinois, Montana and Nebraska.
As of Dec 31, 2023, the total number of locations and gaming terminals increased 5.9% year over year to 3,961 and 6.6% to 25,083, respectively.
Operating Highlights
During fourth-quarter 2023, the company's operating income was $25.5 million, up 1.4% year over year. On the other hand, the operating margin declined 40 basis points (bps) to 8.6% compared with 9% reported in the prior year.
Adjusted EBITDA in the quarter was $44.6 million, up from $43.3 million reported in the year-ago quarter. Adjusted EBITDA margin was 15%, down 60 bps year over year.
Sneak Peek at 2023
Net revenues of Accel in 2023 amounted to $1.17 billion, up from $969.8 million in 2022.
Adjusted EBITDA totaled $181.4 million, up from $162.4 million reported a year ago.
In 2023, EPS was 53 cents compared with 81 cents reported in the previous year.
Balance Sheet
As of Dec 31, 2023, Accel had cash and cash equivalents of $261.6 million, up from $224.1 million at 2022-end. Net debt as of fourth-quarter 2023 end amounted to $281 million, down from $317.9 million reported in the prior-year period.
For 2023, the net cash provided by operating activities was $132.5 million compared with $108 million in the prior year period.
During the quarter, the company repurchased shares of its common stock worth approximately $14 million.
Accel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
Norwegian Cruise Line Holdings Ltd. NCLH reported fourth-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
The company reported robust demand for its Norwegian Cruise Line brand, with bookings and pricing exceeding 2023 levels. Also, it reported solid demand for Oceania Cruises and Regent Seven Seas Cruises across various geographical regions, except for itinerary adjustments due to cancellations in the Middle East and Red Sea regions.
Hyatt Hotels Corporation H delivered fourth-quarter 2023 results, wherein earnings topped the Zacks Consensus Estimate but declined on a year-over-year basis. On the other hand, the revenues surpassed the consensus mark and increased year over year.
Hyatt's quarterly results reflected year-over-year growth in comparable system-wide revenue per available room, driven by an increase in occupancy and average daily rate. This uptrend is mainly driven by strong global travel demand, especially among leisure and business guests, and group customers. Moreover, rapid improvement in Greater China and strengthening group demand in the United States are encouraging. However, increased costs and expenses and foreign currency risks partially offset the aforementioned tailwinds and hurt the bottom line.
Planet Fitness, Inc. PLNT reported fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Also, both metrics increased on a year-over-year basis.
The company's results reflect an improved cancel rate with increased visits per member and higher visit frequency across all age groups compared with the previous year. It noted rises in penetration levels among all generational groups. However, the company cited concerns about continued macroeconomic uncertainty and a slowing down of sales (owing to a transition toward more strength equipment over cardio). The company anticipates 2024 sales distribution to resemble that of 2023, showing a return to a standard quarterly rhythm.
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