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Spotting Winners: Wynn Resorts (NASDAQ:WYNN) And Casino Operator Stocks In Q1


Petr Huřťák /
2024/07/10 5:00 am EDT

Looking back on casino operator stocks' Q1 earnings, we examine this quarter's best and worst performers, 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 slower Q1; on average, revenues beat analyst consensus estimates by 0.5%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and while some of the casino operator stocks have fared somewhat better than others, they collectively declined, with share prices falling 0.6% on average since the previous 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 $1.86 billion, up 30.9% year on year, exceeding analysts' expectations by 3.5%. Overall, it was a very strong quarter for the company with a decent beat of analysts' earnings.

"The strong momentum we experienced in our business throughout 2023 continued to build during the first quarter with Adjusted Property EBITDAR reaching a new all-time record. The investments we have made in our properties, our team and our unique programming continue to extend our leadership position in each of our markets," said Craig Billings, CEO of Wynn Resorts, Limited.

Wynn Resorts Total Revenue

Wynn Resorts achieved the fastest revenue growth of the whole group. The stock is down 12.6% since reporting and currently trades at $85.02.

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

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, outperforming 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

Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 4.1% since reporting. It currently trades at $29.37.

Is now the time to buy Golden Entertainment? 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 estimates.

Caesars Entertainment had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 2.6% since the results and currently trades at $36.81.

Read our full analysis of Caesars Entertainment's results here.

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 $618.5 million, up 3.3% year on year, falling short of analysts' expectations by 1.4%. Looking more broadly, it was a weaker quarter for the company with a miss of analysts' earnings estimates.

The stock is down 9.3% since reporting and currently trades at $11.94.

Read our full, actionable report on Bally's 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, surpassing analysts' expectations by 3.7%. Looking more broadly, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and a decent beat of analysts' Casino revenue estimates.

MGM Resorts achieved the biggest analyst estimates beat among its peers. The stock is up 10% since reporting and currently trades at $43.7.

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

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