Wrapping up Q2 earnings, we look at the numbers and key takeaways for the casino operator stocks, including Wynn Resorts (NASDAQ:WYNN) 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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.6%.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, casino operator stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
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 $1.73 billion, up 8.6% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a miss of analysts’ earnings estimates.
"Our second quarter results, including a new second quarter record for Adjusted Property EBITDAR, reflect continued strength throughout our business. I am incredibly proud of our teams in Las Vegas, Macau and Boston," said Craig Billings, CEO of Wynn Resorts, Limited.
Interestingly, the stock is up 1.8% since reporting and currently trades at $77.63.
Read our full report on Wynn Resorts here, it’s free.
Best Q2: 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 $1.66 billion, flat year on year, in line with analysts’ expectations. The business had a very strong quarter with an impressive beat of analysts’ earnings estimates.
The market seems content with the results as the stock is up 2.4% since reporting. It currently trades at $17.67.
Is now the time to buy PENN Entertainment? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $167.3 million, down 41.6% year on year, falling short of analysts’ expectations by 2.9%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
Golden Entertainment delivered the slowest revenue growth in the group. Interestingly, the stock is up 11.8% since the results and currently trades at $31.46.
Read our full analysis of Golden Entertainment’s results here.
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 $4.33 billion, up 9.8% year on year. This number beat analysts’ expectations by 2.9%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ earnings estimates.
The stock is down 18.5% since reporting and currently trades at $35.03.
Read our full, actionable report on MGM Resorts here, it’s free.
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 $2.83 billion, down 1.7% year on year. This result missed analysts’ expectations by 1%. Overall, it was a softer quarter as it also recorded a miss of analysts’ earnings estimates.
The stock is down 2.4% since reporting and currently trades at $36.
Read our full, actionable report on Caesars Entertainment here, it’s free.
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