Casino Operator Stocks Q3 Teardown: Red Rock Resorts (NASDAQ:RRR) Vs The Rest

As the Q3 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 Red Rock Resorts (NASDAQ:RRR) and its peers.

Casino (EPA:CASP) 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 slower Q3. As a group, revenues were in line with analysts’ consensus estimates.

While some casino operator stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results.

Red Rock Resorts (NASDAQ:RRR)

Red Rock Resorts reported revenues of $468 million, up 13.7% year on year. This print exceeded analysts’ expectations by 1.5%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS and EBITDA estimates.

Red Rock Resorts scored the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 11.1% since reporting and currently trades at $48.51.

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Best Q3: Boyd Gaming (NYSE:BYD)

Boyd Gaming reported revenues of $961.2 million, up 6.4% year on year, outperforming analysts’ expectations by 4.8%. The business had a strong quarter with a decent beat of analysts’ EBITDA estimates.

Boyd Gaming achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 11.1% since reporting. It currently trades at $71.49.

Weakest Q3: Wynn Resorts (NASDAQ:WYNN)

Wynn Resorts reported revenues of $1.69 billion, up 1.3% year on year, falling short of analysts’ expectations by 2%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.

As expected, the stock is down 4.8% since the results and currently trades at $91.06.

Monarch (NASDAQ:MCRI)

Monarch reported revenues of $137.9 million, up 3.7% year on year. This print topped analysts’ expectations by 2.9%. It was a strong quarter as it also logged a decent beat of analysts’ EPS and EBITDA estimates.

The stock is down 1.1% since reporting and currently trades at $72.81.

Golden Entertainment (NASDAQ:GDEN)

Golden Entertainment reported revenues of $161.2 million, down 37.4% year on year. This number lagged analysts' expectations by 1.1%. Aside from that, it was a mixed quarter as it also recorded a solid beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.

Golden Entertainment had the slowest revenue growth among its peers. The stock is up 7.8% since reporting and currently trades at $33.20.

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This content was originally published on Stock Story