Accel Entertainment Inc (ACEL) shares plummeted 14.12% in intraday trading, following a disappointing second-quarter earnings report released earlier. The company, which operates in the casinos & gaming sector, reported mixed results that fell short of investor expectations despite beating revenue estimates.
According to the earnings report, Accel Entertainment posted earnings of $0.08 per diluted share for the quarter ended June 30, a substantial drop from $0.17 in the same quarter last year. This figure significantly missed the FactSet consensus estimate of $0.16 per share. On a more positive note, the company's net revenue for the quarter rose to $335.9 million from $309.4 million a year earlier, slightly surpassing the expected $332.5 million.
The stark contrast between Accel's revenue growth and profit decline suggests potential challenges in managing costs or maintaining profit margins. While the company reported adjusted earnings of 26 cents per share, beating analyst expectations of 23 cents, investors seem to be focusing on the unadjusted figures and the significant year-over-year decline in profitability. The market's severe reaction indicates that expectations may have been set higher, leading to disappointment despite the revenue beat and causing the stock to tumble in today's trading session.
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