Gaming Solutions Stocks Q2 Teardown: Light & Wonder (NASDAQ:LNW) Vs The Rest
Let’s dig into the relative performance of Light & Wonder (NASDAQ:LNW) and its peers as we unravel the now-completed Q2 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 7 gaming solutions stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 2.4%.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. However, gaming solutions stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
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 $818 million, up 11.9% year on year. This print exceeded analysts’ expectations by 2.6%. Despite the top-line beat, it was still a weak quarter for the company with a miss of analysts’ earnings estimates.
Interestingly, the stock is up 8.4% since reporting and currently trades at $109.07.
Read our full report on Light & Wonder here, it’s free.
Best Q2: 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 $220.4 million, up 33.5% year on year, outperforming analysts’ expectations by 9.4%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.
Rush Street Interactive scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.2% since reporting. It currently trades at $9.47.
Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $72.59 million, down 6.7% year on year, falling short of analysts’ expectations by 2.6%. It was a weak quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ daily active users estimates.
PlayStudios posted the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. The company reported 13.6 million monthly active users, down 2% year on year. As expected, the stock is down 19% since the results and currently trades at $1.58.
Read our full analysis of PlayStudios’s results here.
Inspired (NASDAQ:INSE)
Specializing in digital casino gaming, Inspired (NASDAQ:INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.
Inspired reported revenues of $75.6 million, down 4.8% year on year, surpassing analysts’ expectations by 1.7%. Zooming out, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
The stock is up 10.5% since reporting and currently trades at $8.73.
Read our full, actionable report on Inspired here, it’s free.
DraftKings (NASDAQ:DKNG)
Getting its start in daily fantasy sports, DraftKings (NASDAQ:DKNG) is a digital sports entertainment and gaming company.
DraftKings reported revenues of $1.10 billion, up 26.2% year on year, in line with analysts’ expectations. Taking a step back, it was a strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations.
The stock is up 1.4% since reporting and currently trades at $35.98.
Read our full, actionable report on DraftKings here, it’s free.
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