The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how casino operator stocks fared in Q2, starting with Boyd Gaming (NYSE:BYD).
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%.
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. This year has been a different story as mixed inflation signals have led to market volatility. However, casino operator stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
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 $967.5 million, up 5.5% year on year. This print exceeded analysts’ expectations by 6.4%. Overall, it was a strong quarter for the company with a solid beat of analysts’ Non-Gaming revenue estimates.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “Our Company delivered a solid performance in the second quarter, in-line with our expectations.”
Boyd Gaming pulled off the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 1.6% since reporting and currently trades at $57.59.
Is now the time to buy Boyd Gaming? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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, outperforming analysts’ expectations by 2.9%. It was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates and a decent beat of analysts’ Hotel revenue estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.7% since reporting. It currently trades at $39.21.
Is now the time to buy MGM Resorts? 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 weak quarter for the company with a miss of analysts’ earnings and Hotel revenue estimates.
Golden Entertainment posted the slowest revenue growth in the group. Interestingly, the stock is up 6.7% since the results and currently trades at $30.03.
Read our full analysis of Golden 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 $128.1 million, up 3.6% year on year, surpassing analysts’ expectations by 1.5%. Taking a step back, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ Hotel revenue estimates.
The stock is up 7.8% since reporting and currently trades at $74.35.
Read our full, actionable report on Monarch 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, falling short of analysts’ expectations by 1%. More broadly, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
The stock is up 1% since reporting and currently trades at $37.24.
Read our full, actionable report on Caesars Entertainment here, it’s free.
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