Casino Operator Stocks Q1 Highlights: Caesars Entertainment (NASDAQ:CZR)
Looking back on casino operator stocks' Q1 earnings, we examine this quarter's best and worst performers, including Caesars Entertainment (NASDAQ:CZR) 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, but casino operator stocks have shown resilience, with share prices up 5.3% on average since the previous earnings results.
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%. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc., commented, “Operating results during the first quarter in Las Vegas are a combination of record occupancy, driven by the Super Bowl and international visitation for Chinese New Year, offset by lower-than-expected hold. In our Regional segment, results reflect weather related weakness in January and early February partially offset by our new property openings. Caesars Digital delivered strong revenue growth despite lower-than-expected hold in online sports due to unfavorable outcomes for the Super Bowl and March Madness. Moving past the first quarter headwinds, we remain optimistic toward improved operating results throughout the balance of the year.”
Caesars Entertainment delivered the weakest performance against analyst estimates of the whole group. The stock is up 9.7% since reporting and currently trades at $39.35.
Read our full report on Caesars Entertainment here, it's free.
Best Q1: 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' Casino revenue estimates.
MGM Resorts scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 16.2% since reporting. It currently trades at $46.18.
Is now the time to buy MGM Resorts? Access our full analysis of the earnings results 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' earnings estimates.
Interestingly, the stock is up 21.3% since the results and currently trades at $19.90.
Read our full analysis of PENN Entertainment's results here.
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, surpassing analysts' expectations by 3.2%. Taking a step back, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates.
Golden Entertainment had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $30.74.
Read our full, actionable report on Golden Entertainment here, it's free.
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, in line with analysts' expectations. Overall, it was a weaker quarter for the company with a miss of analysts' revenue and earnings estimates.
The stock is flat since reporting and currently trades at $69.79.
Read our full, actionable report on Monarch here, it's free.
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