Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Red Rock Resorts (NASDAQ:RRR) and the best and worst performers in the casino operator industry.
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 Q4. As a group, revenues beat analysts’ consensus estimates by 0.9%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.2% since the latest earnings results.
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 $495.7 million, up 7.1% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates.
The stock is down 8.5% since reporting and currently trades at $46.57.
Read our full report on Red Rock Resorts here, it’s free.
Best Q4: 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 $134.5 million, up 4.9% year on year, outperforming analysts’ expectations by 4.4%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Monarch scored the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $85.76.
Is now the time to buy Monarch? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Bally's (NYSE:BALY)
Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE:BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms.
Bally's reported revenues of $580.4 million, down 5.1% year on year, falling short of analysts’ expectations by 1.9%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Interestingly, the stock is up 2.2% since the results and currently trades at $13.30.
Read our full analysis of Bally’s results here.
Caesars Entertainment (NASDAQ:CZR)
Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ:CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties.
Caesars Entertainment reported revenues of $2.80 billion, flat year on year. This number lagged analysts' expectations by 1.1%. More broadly, it was actually a very strong quarter as it produced an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is down 19.6% since reporting and currently trades at $28.04.
Read our full, actionable report on Caesars Entertainment 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 $4.35 billion, flat year on year. This print beat analysts’ expectations by 1.3%. More broadly, it was a satisfactory quarter as it also recorded a solid beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
The stock is down 7.7% since reporting and currently trades at $31.70.
Read our full, actionable report on MGM Resorts here, it’s free.
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