Casino Operator Stocks Q2 Recap: Benchmarking Monarch (NASDAQ:MCRI)
As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the casino operator industry, including Monarch (NASDAQ:MCRI) and its peers.
Casino operators enjoy limited competition because gambling is a highly regulated industry. These companies can also enjoy healthy margins and profits. Have you ever heard the phrase ‘the house always wins’? Regulation cuts both ways, however, and casinos may face stroke-of-the-pen risk that suddenly limits what they can or can't do and where they can do it. Furthermore, digitization is changing the game, pun intended. Whether it’s online poker or sports betting on your smartphone, innovation is forcing these players to adapt to changing consumer preferences, such as being able to wager anywhere on demand.
The 9 casino operator stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.6%.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, casino operator stocks have held steady amidst all this with share prices up 1.5% on average since the latest earnings results.
Monarch (NASDAQ:MCRI)
Established in 1993, Monarch (NASDAQ:MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.
Monarch reported revenues of $128.1 million, up 3.6% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a good cent quarter for the company with a decent beat of analysts’ earnings estimates.
Interestingly, the stock is up 9.4% since reporting and currently trades at $75.43.
Is now the time to buy Monarch? Access our full analysis of the earnings results here, it’s free.
Best Q2: PENN Entertainment (NASDAQ:PENN)
Established in 1982, PENN Entertainment (NASDAQ:PENN) is a diversified American operator of casinos, sports betting, and entertainment venues.
PENN Entertainment reported revenues of $1.66 billion, flat year on year, in line with analysts’ expectations. It was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 8.8% since reporting. It currently trades at $18.78.
Is now the time to buy PENN Entertainment? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Golden Entertainment (NASDAQ:GDEN)
Founded in 2001, Golden Entertainment (NASDAQ:GDEN) is a gaming company operating casinos, taverns, and distributed gaming platforms.
Golden Entertainment reported revenues of $167.3 million, down 41.6% year on year, falling short of analysts’ expectations by 2.9%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
Golden Entertainment had the slowest revenue growth in the group. Interestingly, the stock is up 15% since the results and currently trades at $32.37.
Read our full analysis of Golden Entertainment’s results here.
MGM Resorts (NYSE:MGM)
Operating several properties on the Las Vegas Strip, MGM Resorts (NYSE:MGM) is a global hospitality and entertainment company known for its resorts and casinos.
MGM Resorts reported revenues of $4.33 billion, up 9.8% year on year, surpassing analysts’ expectations by 2.9%. Taking a step back, it was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates.
The stock is down 16.6% since reporting and currently trades at $35.82.
Read our full, actionable report on MGM Resorts here, it’s free.
Bally's (NYSE:BALY)
Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE:BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms.
Bally's reported revenues of $621.7 million, up 2.5% year on year, falling short of analysts’ expectations by 3.1%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ earnings estimates.
Bally's had the weakest performance against analyst estimates among its peers. The stock is flat since reporting and currently trades at $17.19.
Read our full, actionable report on Bally's here, it’s free.
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