As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the casino operator industry, including Golden Entertainment (NASDAQ: GDEN) 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 slower Q3. As a group, revenues were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.3% since the latest earnings results.
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 $161.2 million, down 37.4% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
Blake Sartini, Chairman and Chief Executive Officer of Golden, commented, “In the third quarter, we have maintained our commitment to returning capital to shareholders through our regular dividend and share buyback program despite a challenging operating environment for our properties. We anticipate that business conditions will improve in the fourth quarter and, with our increased share buyback authorization currently at over $130 million, we expect to continue to use our liquidity to acquire our own shares throughout the year.”
Golden Entertainment delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 1.1% since reporting and currently trades at $31.12.
Read our full report on Golden Entertainment here, it’s free.
Best Q3: 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 $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’ Non-Gaming revenue and EBITDA estimates.
Boyd Gaming pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 10.7% since reporting. It currently trades at $71.20.
Is now the time to buy Boyd Gaming? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Wynn Resorts (NASDAQ: WYNN)
Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ: WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.
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 2.8% since the results and currently trades at $92.98.
Read our full analysis of Wynn Resorts’s results here.
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 $1.64 billion, up 1.2% year on year. This number lagged analysts' expectations by 1%. It was a disappointing quarter as it also recorded a significant miss of analysts’ EBITDA and EPS estimates.
The stock is down 3.6% since reporting and currently trades at $18.55.
Read our full, actionable report on PENN Entertainment here, it’s free.
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 $137.9 million, up 3.7% year on year. This number beat analysts’ expectations by 2.9%. It was a strong quarter as it also put up a decent beat of analysts’ EPS and EBITDA estimates.
The stock is up 6.6% since reporting and currently trades at $78.51.
Read our full, actionable report on Monarch here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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