Yahoo Finance Why Is Accel Entertainment (ACEL) Stock Rocketing Higher Today
What Happened:
Shares of slot machine and terminal operator Accel Entertainment (NYSE:ACEL) jumped 9.7% in the pre-market session after the company reported second-quarter earnings results, with revenue and EPS exceeding expectations. The company also announced the acquisition of Fairmount Holdings. Overall, this was a good quarter that should please shareholders.
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What is the market telling us:
Accel Entertainment's shares are not very volatile than the market average and over the last year have had only 5 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago, when the stock gained 8.3% on the news that the company reported fourth-quarter results that blew past analysts' EPS expectations. Revenue and adjusted EBITDA also outperformed Wall Street's estimates. No financial guidance was given in the earnings release, so it was hard to tell the company's outlook for near-term financial performance. However, the company continued to expand to new locations and grow the number of gaming terminals, highlighting the opportunity to expand the business. This is promising as the terminals in Illinois and Nevada continued to outperform following the acquisition of Century. Overall, we think this was a really good quarter that should please shareholders.
Accel Entertainment is up 17.4% since the beginning of the year, and at $12.15 per share, has set a new 52-week high. Investors who bought $1,000 worth of Accel Entertainment's shares at the IPO in November 2019 would now be looking at an investment worth $1,109.
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