What Happened?
Shares of luxury casino and resort operator Monarch (NASDAQ: MCRI) jumped 22% in the afternoon session after the company reported record financial results for the second quarter of 2025, significantly beating analyst expectations.
The casino operator announced record net revenue of $136.9 million, a 6.8% increase year-over-year, and a 19.1% jump in net income to $27 million. Diluted earnings per share (EPS) came in at $1.44, handily beating the consensus estimate of $1.22. The strong performance was driven by a 12.1% surge in casino revenue. The company's Adjusted EBITDA, a key measure of profitability that excludes interest, taxes, depreciation, and amortization, rose 16.8% to a record $51.3 million.
CEO John Farahi credited the results to operational efficiencies and market share gains at its properties in Reno, Nevada, and Black Hawk, Colorado. Following the strong report, Wall Street analysts reacted positively. Wells Fargo upgraded the stock from "Underweight" to "Equal Weight" and raised its price target to $89, citing consistent performance and a strong free cash flow profile. Stifel also increased its price target from $81 to $92.
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What Is The Market Telling Us
Monarch’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. Moves this big are rare for Monarch and indicate this news significantly impacted the market’s perception of the business.
Monarch is up 35.7% since the beginning of the year, and at $105.47 per share, has set a new 52-week high. Investors who bought $1,000 worth of Monarch’s shares 5 years ago would now be looking at an investment worth $3,001.
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