After today's selloff, shares of Accel Entertainment (ACEL) are up more than 2% following solid fourth quarter results announced by the company last night. Indeed, boosted by investments from the June 2022 acquisition of Century Gaming, Inc. and flat same-store sales growth of 6% in its key Illinois market, net income for the period rose 44.6% year-over-year to $278.1 million and topped consensus estimates by 2.6 million dollars: As the company also continues to work hard and increase the efficiency of its resources, due to higher labor, parts and fuel costs, adjusted earnings rose 27.8% to 23 cents per share, which was also one cent better. is expected.
Importantly, while ACEL declined to provide specific guidance due to near-term macroeconomic uncertainty, it said the headwinds that pushed it to exceed 2022 have continued into the current year. In my opinion, this reflects the strength and resilience of ACEL's local business model, which should further benefit from the continued investment that bars, restaurants, convenience stores, truck stops and other businesses are making in their games. not casino based. Offers There is a growing number of players who choose the company's high-quality local offers over traditional casinos due to their convenience and attractiveness. When you combine this with ACEL's continued efforts to expand its reach into other markets outside of Illinois, with the company's acquisition last quarter of another gaming operator with 26 games and approximately 300 gaming stations in Montana, I think by in 2023 should be strong enough for the stock to maintain the good momentum it has recently enjoyed going forward.
Julius Juenemann, CFA is an equity analyst and co-editor of the Forbes Investor Private Position Survey and Investment Newsletters. Accel Entertainment (ACEL) is a current Forbes Investor Recommendation. To access these and other stocks recommended by Forbes Investor, click here to subscribe.