The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how casino operator stocks fared in Q2, starting with Boyd Gaming (NYSE: BYD).
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 2.8%.
Thankfully, share prices of the companies have been resilient as they are up 5.4% on average since the latest earnings results.
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 $1.03 billion, up 6.9% year on year. This print exceeded analysts’ expectations by 5.4%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "Our Company delivered a strong performance in the second quarter, with broad-based growth across our operating segments, including our Online and Managed segments. We achieved our strongest property-level revenue and Adjusted EBITDAR growth in more than three years, with property-level margins once again exceeding 40%. This growth was supported by continued strength in play from our core customers, as well as improvements in retail play. Looking ahead, the recently announced transaction to sell our equity stake in FanDuel will further strengthen the Company's financial position as we continue to invest in our properties, pursue growth opportunities, return capital to shareholders and maintain a strong balance sheet – a strategy that continues to drive long-term shareholder value."
Interestingly, the stock is up 2.1% since reporting and currently trades at $84.24.
Is now the time to buy Boyd Gaming? Access our full analysis of the earnings results here, it’s free.
Best Q2: Red Rock Resorts (NASDAQ: RRR)
Founded in 1976, Red Rock Resorts (NASDAQ: RRR) operates a range of casino resorts and entertainment properties, primarily in the Las Vegas metropolitan area.
Red Rock Resorts reported revenues of $526.3 million, up 8.2% year on year, outperforming analysts’ expectations by 8.4%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates.
Red Rock Resorts delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 10% since reporting. It currently trades at $60.46.
Is now the time to buy Red Rock Resorts? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $1.74 billion, flat year on year, falling short of analysts’ expectations by 0.6%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 19% since the results and currently trades at $127.50.
Read our full analysis of Wynn Resorts’s results here.
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 $136.9 million, up 6.8% year on year. This number topped analysts’ expectations by 5.4%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 19.7% since reporting and currently trades at $104.44.
Read our full, actionable report on Monarch here, it’s free.
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 $163.6 million, down 2.2% year on year. This result came in 2.4% below analysts' expectations. Aside from that, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates.
Golden Entertainment had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 10.8% since reporting and currently trades at $23.89.
Read our full, actionable report on Golden Entertainment 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 thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), 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 potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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