The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Monarch (NASDAQ: MCRI) and the rest of the casino operator stocks fared in Q1.
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 Q1. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady as they are up 4.8% on average since the latest earnings results.
Best Q1: 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 $125.4 million, up 3.1% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a strong quarter for the company with a decent beat of analysts’ EPS and EBITDA estimates.
Monarch pulled off the biggest analyst estimates beat of the whole group. The stock is up 10.1% since reporting and currently trades at $83.58.
Is now the time to buy Monarch? Access our full analysis of the earnings results here, it’s free.
MGM Resorts (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 $4.28 billion, down 2.4% year on year, in line with analysts’ expectations. The business had a satisfactory quarter with an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 6.7% since reporting. It currently trades at $33.55.
Is now the time to buy MGM Resorts? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $1.67 billion, up 4.1% year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Interestingly, the stock is up 4.5% since the results and currently trades at $16.41.
Read our full analysis of PENN Entertainment’s results here.
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 $1.7 billion, down 8.7% year on year. This number missed analysts’ expectations by 1.8%. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ EPS and EBITDA estimates.
Wynn Resorts had the slowest revenue growth among its peers. The stock is up 4.2% since reporting and currently trades at $87.09.
Read our full, actionable report on Wynn Resorts 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 $160.8 million, down 7.6% year on year. This result came in 2.1% below analysts' expectations. It was a softer quarter as it also logged a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.
Golden Entertainment had the weakest performance against analyst estimates among its peers. The stock is up 7.9% since reporting and currently trades at $27.96.
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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