A Look Back at Gaming Solutions Stocks’ Q2 Earnings: Inspired (NASDAQ:INSE) Vs The Rest Of The Pack

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how gaming solutions stocks fared in Q2, starting with Inspired (NASDAQ:INSE).

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 1.8%.

Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

While some gaming solutions stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.

Slowest Q2: 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. This print exceeded analysts’ expectations by 1.7%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ earnings estimates and a miss of analysts’ operating margin estimates.

“We delivered solid second quarter 2024 results led by strength in our interactive business and a stable performance in gaming,” said Lorne Weil, Executive Chairman of Inspired.

Interestingly, the stock is up 14.4% since reporting and currently trades at $9.04.

Read our full report on Inspired 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%. The business had an incredible quarter with an impressive beat of analysts’ earnings and EBITDA estimates.

Rush Street Interactive delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 4.8% since reporting. It currently trades at $10.47.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results 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 $818 million, up 11.9% year on year, exceeding analysts’ expectations by 2.6%. Still, it was a slower quarter as it posted a miss of analysts’ earnings estimates.

As expected, the stock is down 7.5% since the results and currently trades at $93.07.

Read our full analysis of Light & Wonder’s results here.

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. This number came in 2.6% below analysts' expectations. It was a softer quarter as it also recorded full-year revenue guidance missing analysts’ expectations.

PlayStudios had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update among its peers. The company reported 13.6 million monthly active users, down 2% year on year. The stock is down 25.6% since reporting and currently trades at $1.45.

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

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 $628.5 million, up 9.8% year on year. This print met analysts’ expectations. Taking a step back, it was a slower quarter as it logged a miss of analysts’ earnings estimates.

The stock is flat since reporting and currently trades at $133.50.

Read our full, actionable report on Churchill Downs here, it’s free.

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