Spotting Winners: PlayStudios (NASDAQ:MYPS) And Gaming Solutions Stocks In Q4

Let's dig into the relative performance of PlayStudios (NASDAQ:MYPS) and its peers as we unravel the now-completed Q4 gaming solutions earnings season.

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 those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and gaming solutions stocks have held roughly steady amidst all this, with share prices up 1.1% on average since the previous earnings results.

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, topping analyst expectations by 2.4%. It was a slower quarter for the company, with a miss of analysts' earnings estimates.

Andrew Pascal, Chairman and Chief Executive Officer of PLAYSTUDIOS, commented, “We closed 2023 strongly, reporting fourth quarter results that were ahead of consensus expectations and above the midpoint of our guidance.”

PlayStudios delivered the weakest full-year guidance update of the whole group. 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 report on PlayStudios 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' 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)

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.

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 $561.2 million, up 16.9% year on year, surpassing analyst expectations by 1.5%. It was a decent quarter for the company, with a beat of analysts' revenue and EPS estimates.

The stock is up 3.8% since the results and currently trades at $121.89.

Read our full, actionable report on Churchill Downs 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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