Let’s dig into the relative performance of Monarch (NASDAQ:MCRI) and its peers as we unravel the now-completed Q2 casino operator earnings season.
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 7.9% on average since the latest earnings results.
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 print exceeded analysts’ expectations by 5.4%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 20.5% since reporting and currently trades at $105.12.
Is now the time to buy Monarch? 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 and a solid beat of analysts’ EBITDA 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 14.6% since reporting. It currently trades at $62.96.
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 and a miss of analysts’ EBITDA estimates.
Interestingly, the stock is up 18.3% since the results and currently trades at $126.75.
Read our full analysis of Wynn Resorts’s results here.
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 result surpassed analysts’ expectations by 5.4%. Overall, it was a very strong quarter as it also put up a beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates.
The stock is up 5.6% since reporting and currently trades at $87.12.
Read our full, actionable report on Boyd Gaming here, it’s free.
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 $679.1 million, up 9.2% year on year. This print beat analysts’ expectations by 4.3%. Taking a step back, it was a softer quarter as it logged a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Bally's delivered the fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $10.
Read our full, actionable report on Bally's here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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