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Q1 Casino Operator Earnings: Golden Entertainment (NASDAQ:GDEN) Impresses


Adam Hejl /
2024/06/28 4:45 am EDT

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the casino operator stocks, including Golden Entertainment (NASDAQ:GDEN) and its peers.

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; on average, revenues beat analyst consensus estimates by 0.5%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and casino operator stocks have held roughly steady amidst all this, with share prices up 0.4% on average since the previous earnings results.

Best Q1: 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 $174 million, down 37.4% year on year, topping analysts' expectations by 3.2%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.

Golden Entertainment Total Revenue

Golden Entertainment delivered the slowest revenue growth of the whole group. The stock is down 0.6% since the results and currently trades at $30.46.

Is now the time to buy Golden Entertainment? 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 $4.38 billion, up 13.2% year on year, outperforming analysts' expectations by 3.7%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and a decent beat of analysts' operating margin estimates.

MGM Resorts Total Revenue

MGM Resorts scored the biggest analyst estimates beat among its peers. The stock is up 9.4% since the results and currently trades at $43.45.

Is now the time to buy MGM Resorts? Access our full analysis of the earnings results here, it's free.

Weakest Q1: 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 $2.74 billion, down 3.1% year on year, falling short of analysts' expectations by 2.8%. It was a weak quarter for the company, with a miss of analysts' earnings and operating margin estimates.

Caesars Entertainment had the weakest performance against analyst estimates in the group. The stock is up 10.6% since the results and currently trades at $39.69.

Read our full analysis of Caesars Entertainment'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 $121.7 million, up 4.3% year on year, falling short of analysts' expectations by 0.5%. It was a slower quarter for the company, with a miss of analysts revenue and earnings estimates.

The stock is down 1.9% since the results and currently trades at $68.11.

Read our full, actionable report on Monarch here, it's free.

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 $1.61 billion, down 4% year on year, falling short of analysts' expectations by 1.1%. It was a weak quarter for the company, with a miss of analysts' operating margin and earnings estimates.

The stock is up 15.2% since the results and currently trades at $18.9.

Read our full, actionable report on PENN Entertainment here, it's free.

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