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A Look Back at Casino Operator Stocks' Q1 Earnings: Bally's (NYSE:BALY) Vs The Rest Of The Pack


Jabin Bastian /
2024/07/05 5:58 am EDT

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the casino operator stocks, including Bally's (NYSE:BALY) 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%. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts 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 1.2% on average since the previous earnings results.

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%. It was a weaker quarter for the company, with a miss of analysts' earnings estimates.

Robeson Reeves, Bally’s Chief Executive Officer, commented, “Bally’s is off to a solid start in 2024, driven by revenue growth in our Casinos & Resorts and North America Interactive segments. While International Interactive revenues fell 4.4% year-over-year in the aggregate, our core UK interactive operations grew revenues 12% (7% on a constant currency basis) as our strategies play out reflecting the initiatives we adopted in contemplation of the White Paper implementation in the UK. On a consolidated basis, revenues in the first quarter grew 3.3% year-over-year to $618.5 million.

Bally's Total Revenue

The stock is down 9.6% since the results and currently trades at $11.9.

Read our full report on Bally's 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

Golden Entertainment had the slowest revenue growth among its peers. The stock is down 2.1% since the results and currently trades at $30.01.

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. Its revenue, adjusted EBITDA, and EPS all missed Wall Street's estimates.

Caesars Entertainment had the weakest performance against analyst estimates in the group. The stock is up 5.2% since the results and currently trades at $37.73.

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

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, surpassing analysts' expectations by 3.5%. It was a very strong quarter for the company, with a decent beat of analysts' earnings estimates.

Wynn Resorts scored the fastest revenue growth among its peers. The stock is down 10.1% since the results and currently trades at $87.4.

Read our full, actionable report on Wynn Resorts 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%. 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 delivered the biggest analyst estimates beat among its peers. The stock is up 8.9% since the results and currently trades at $43.28.

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

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