As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at casino operator stocks, starting with Golden Entertainment (NASDAQ: GDEN).
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 2.8%.
In light of this news, share prices of the companies have held steady as they are up 1% on average since the latest earnings results.
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 $163.6 million, down 2.2% year on year. This print fell short of analysts’ expectations by 2.4%. Overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
Golden Entertainment delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 7.6% since reporting and currently trades at $24.73.
Read our full report on Golden Entertainment here, it’s free.
Best Q2: Red Rock Resorts (NASDAQ: RRR)
Founded in 1976, Red Rock Resorts (NASDAQ: RRR) operates a range of casino resorts and entertainment properties, primarily in the Las Vegas metropolitan area.
Red Rock Resorts reported revenues of $526.3 million, up 8.2% year on year, outperforming analysts’ expectations by 8.4%. The business had an exceptional quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
Red Rock Resorts achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.7% since reporting. It currently trades at $59.71.
Is now the time to buy Red Rock Resorts? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $1.74 billion, flat year on year, falling short of analysts’ expectations by 0.6%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Interestingly, the stock is up 4.6% since the results and currently trades at $112.04.
Read our full analysis of Wynn Resorts’s results here.
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 $2.91 billion, up 2.7% year on year. This number topped analysts’ expectations by 1.2%. Zooming out, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.
The stock is down 10.9% since reporting and currently trades at $25.35.
Read our full, actionable report on Caesars Entertainment here, it’s free.
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 $679.1 million, up 9.2% year on year. This print beat analysts’ expectations by 4.3%. Taking a step back, it was a softer quarter as it logged a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Bally's scored the fastest revenue growth among its peers. The stock is down 6.7% since reporting and currently trades at $9.30.
Read our full, actionable report on Bally's here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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