Looking back on casino operator stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Caesars Entertainment (NASDAQ:CZR) 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%.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. However, casino operator stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
Caesars Entertainment (NASDAQ:CZR) Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ:CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties.
Caesars Entertainment reported revenues of $2.83 billion, down 1.7% year on year. This print fell short of analysts’ expectations by 1%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc., commented, “On a consolidated basis, the Company generated $1 billion of Adjusted EBITDA. Our operating results reflect year over year growth in Adjusted EBITDA in our Las Vegas segment driven by record same store revenues, hotel occupancy and Average Daily Rate (ADR).”
Interestingly, the stock is up 1% since reporting and currently trades at $37.24.
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Best Q2: MGM Resorts (NYSE: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, outperforming analysts’ expectations by 2.9%. It was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates and a decent beat of analysts’ Hotel revenue estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.7% since reporting. It currently trades at $39.21.
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 posted the slowest revenue growth in the group. Interestingly, the stock is up 6.7% since the results and currently trades at $30.03.
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, surpassing analysts’ expectations by 1.5%. More broadly, it was a good quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ Hotel revenue estimates.
The stock is up 7.8% since reporting and currently trades at $74.35.
Boyd Gaming (NYSE:BYD) Run by the Boyd family, Boyd Gaming (NYSE:BYD) is a diversified operator of gaming entertainment properties across the United States, offering casino games, hotel accommodations, and dining.
Boyd Gaming reported revenues of $967.5 million, up 5.5% year on year, surpassing analysts’ expectations by 6.4%. Overall, it was a strong quarter for the company with a solid beat of analysts’ Non-Gaming revenue estimates.
Boyd Gaming achieved the biggest analyst estimates beat among its peers. The stock is down 1.6% since reporting and currently trades at $57.59.
This content was originally published on Stock Story
