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Unpacking Q1 Earnings: Monarch (NASDAQ:MCRI) In The Context Of Other Casino Operator Stocks

MCRI Cover Image
Unpacking Q1 Earnings: Monarch (NASDAQ:MCRI) In The Context Of Other Casino Operator Stocks

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the casino operator stocks, including Monarch (NASDAQ:MCRI) 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 those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the casino operator stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.9% on average since the previous earnings results.

Monarch (NASDAQ:MCRI)

Established in 1993, Monarch (NASDAQ:MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.

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Monarch reported revenues of $121.7 million, up 4.3% year on year, falling short of analysts' expectations by 0.5%. It was a slower quarter for the company, with a miss of analysts' revenue and earnings estimates.

CEO Comment John Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “In the first quarter of 2024 net revenue and adjusted EBITDA grew to all-time first quarter records of $121.7 million and $38.5 million, respectively, and the EBITDA margin improved to 31.7% from 31.3% in the same period of the prior year.

Monarch Total Revenue
Monarch Total Revenue

The stock is down 4% since the results and currently trades at $66.6.

Read our full report on Monarch 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 Total Revenue

Golden Entertainment had the slowest revenue growth among its peers. The stock is down 3% since the results and currently trades at $29.72.

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 and adjusted EBITDA estimates.

Caesars Entertainment had the weakest performance against analyst estimates in the group. The stock is up 2.4% since the results and currently trades at $36.73.

Read our full analysis of Caesars 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 $4.38 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' operating margin estimates.

MGM Resorts scored the biggest analyst estimates beat among its peers. The stock is up 2.7% since the results and currently trades at $40.8.

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

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 good 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 5.7% since the results and currently trades at $91.75.

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

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