{"id":234371,"date":"2022-09-27T21:00:35","date_gmt":"2022-09-28T02:00:35","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=234371"},"modified":"2022-09-28T11:45:58","modified_gmt":"2022-09-28T16:45:58","slug":"casino-cfos-optimistic-gaming-supplier-stocks-look-interesting","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/","title":{"rendered":"Gaming CFOs Mostly Upbeat, Strong Dollar Could Pinch Suppliers"},"content":{"rendered":"<p>Casino industry chief financial officers (CFOs) are mostly optimistic, but a strong dollar could be a drag on other gaming companies, says a sell-side analyst.<\/p>\n<figure id=\"attachment_230996\" aria-describedby=\"caption-attachment-230996\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-230996\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/09\/AGS-142x121.png\" alt=\"PlayAGS Inspired\" width=\"1200\" height=\"1027\" \/><figcaption  id=\"caption-attachment-230996\"class=\"text-description\">PlayAGS slot machines. An analyst is bullish on some gaming supplier stocks. (Image: PlayAGS)<\/figcaption><\/figure>\n<p>In a report to clients today, Roth Capital analyst Edward Engel noted recent conversations with financial bosses of casino operators were constructive and could augur well for capital return plans in 2023.<\/p>\n<blockquote class=\"main-blockquote\"><p><strong>Not only are gaming dividends\/buy-backs at decade highs, but based on our conversations operators are pressing on with CapEx initiatives,\u201d<\/strong> wrote the analyst. <strong>\u201cWe believe this creates a supportive backdrop for 2023 slot sales\/placements, as well as casino floor investments like cashless gaming and tech that better captures player data\/analytics.\u201d<\/strong><\/p><\/blockquote>\n<p>Share <a href=\"https:\/\/www.casino.org\/news\/mgm-cfo-halkyard-highlights-convention-biz-stock-buybacks\/\">repurchase programs<\/a> are the capital return effort of choice in the industry, as only a scant amount of casino operators restored and grew dividends following the start of the coronavirus pandemic.<\/p>\n<p>As for demand trends, those remain sturdy, particularly on the Las Vegas Strip. Engel added North American gross gaming revenue (GGR) in August likely tracked 1% to 2% ahead of the year earlier period.<\/p>\n<h2>Supplier Recovery Is Notable<\/h2>\n<p>Among the lessons learned by casino operators amid multi-month shutdowns in 2020 is that efficiencies and margins matter. An obvious result of that is a renewed emphasis on higher margin gaming offerings \u2013 namely slot machines.<\/p>\n<div class=\"callout\">\n<p>Now, a potentially lengthy slot upgrade cycle is underway, with possible benefits in store for suppliers such as Everi (NYSE:EVRI), Inspired Entertainment (NASDAQ:INSE), and PlayAGS (NYSE:AGS). Engel has \u201cbuy\u201d ratings on that trio, as well as Bragg Gaming Group (NASDAQ:BRAG).<\/p>\n<\/div>\n<p><strong>\u201cGaming suppliers have largely recovered to pre-COVID levels, where industry unit sales and installed bases have either recovered or exceeded 2019. In 2Q22, industry unit sales reached 95% of 2Q19 levels, vs a 90% recovery in 1Q22,\u201d <\/strong>said the analyst. <strong>\u201cMeanwhile, the North American installed base is +2% on a two-year basis, as new casino openings and a reacclerating replacement cycle grow the market. With CFOs remaining confident ahead of a strong pipeline of upcoming new openings\/expansions, we expect further growth for gaming suppliers in 2023.\u201d<\/strong><\/p>\n<p>Last month, Inspired Entertainment offered <a href=\"https:\/\/www.casino.org\/news\/ags-stock-surges-on-reports-of-inspired-entertainment-takeover-bid\/\">$10 a share in cash for AGS<\/a>, valuing the target at $370 million. Those discussions ultimately fell apart.<\/p>\n<h2>Strong Dollar Headwinds<\/h2>\n<p>Thanks to five interest rate hikes by the Federal Reserve, with more on the way, the US dollar is <a href=\"https:\/\/www.casino.org\/news\/strong-dollar-could-pressure-gaming-companies-with-ex-us-venues\/\">clobbering other major currencies<\/a> this year, and that\u2019s a drag on companies that convert sales in greenbacks back to the currencies of their home countries.<\/p>\n<p><strong>As Engel points Bragg (euro) and Inspired (British pound) are among the gaming companies contending with exchange rate hurdles. He lowered his price target on Inspired to $16 from $19.<\/strong><\/p>\n<p>\u201cGlobal iGaming operators reported mixed 2Q22 results; however, B2B suppliers grew alongside newly regulated markets like the US. Specifically, companies like BRAG and INSE delivered double-digit iGaming growth as they chip away market share from industry leaders. That said, FX headwinds in Europe offset some growth in 2H22 and 2023,\u201d concluded the analyst.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Casino industry chief financial officers (CFOs) are mostly optimistic, but a strong dollar could be a drag on other gaming companies, says a sell-side analyst. In a report to clients today, Roth Capital analyst Edward Engel noted recent conversations with financial bosses of casino operators were constructive and could augur well for capital return plans [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":230996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[81897,81903],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Casino CFOs Optimistic, Gaming Supplier Stocks Look Interesting<\/title>\n<meta name=\"description\" content=\"Analyst encouraged by casino CFO comments, gamng supplier trends.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Casino CFOs Optimistic, Gaming Supplier Stocks Look Interesting\" \/>\n<meta property=\"og:description\" content=\"Analyst encouraged by casino CFO comments, gamng supplier trends.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-09-28T02:00:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-09-28T16:45:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/09\/AGS-1024x876.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"876\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/\",\"url\":\"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/\",\"name\":\"Casino CFOs Optimistic, Gaming Supplier Stocks Look Interesting\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/09\/AGS.png\",\"datePublished\":\"2022-09-28T02:00:35+00:00\",\"dateModified\":\"2022-09-28T16:45:58+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Analyst encouraged by casino CFO comments, gamng supplier trends.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/09\/AGS.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/09\/AGS.png\",\"width\":1600,\"height\":1369,\"caption\":\"PlayAGS slot machines. An analyst says the stock is inexpensive despite a strong start to 2023. (Image: PlayAGS)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Gaming CFOs Mostly Upbeat, Strong Dollar Could Pinch Suppliers\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Casino CFOs Optimistic, Gaming Supplier Stocks Look Interesting","description":"Analyst encouraged by casino CFO comments, gamng supplier trends.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/","og_locale":"en_US","og_type":"article","og_title":"Casino CFOs Optimistic, Gaming Supplier Stocks Look Interesting","og_description":"Analyst encouraged by casino CFO comments, gamng supplier trends.","og_url":"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2022-09-28T02:00:35+00:00","article_modified_time":"2022-09-28T16:45:58+00:00","og_image":[{"width":1024,"height":876,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/09\/AGS-1024x876.png","type":"image\/png"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/","url":"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/","name":"Casino CFOs Optimistic, Gaming Supplier Stocks Look Interesting","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/09\/AGS.png","datePublished":"2022-09-28T02:00:35+00:00","dateModified":"2022-09-28T16:45:58+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Analyst encouraged by casino CFO comments, gamng supplier trends.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/09\/AGS.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/09\/AGS.png","width":1600,"height":1369,"caption":"PlayAGS slot machines. An analyst says the stock is inexpensive despite a strong start to 2023. (Image: PlayAGS)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/casino-cfos-optimistic-gaming-supplier-stocks-look-interesting\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Gaming CFOs Mostly Upbeat, Strong Dollar Could Pinch Suppliers"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. 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