Analyzing Monarch (NASDAQ:MCRI) and Its Competitors Post-Q2 Earnings Season
As we conclude the Q2 earnings season for casino operators, let’s examine the relative performance of Monarch (NASDAQ:MCRI) alongside its peers.
The gambling sector is characterized by limited competition due to stringent regulations. This environment allows casino operators to maintain substantial profit margins. However, regulations can also pose risks, potentially limiting operational capabilities unexpectedly. Moreover, the industry is undergoing a transformation driven by digitization, compelling casinos to innovate and meet evolving consumer demands for convenient betting options, such as online and mobile platforms.
The nine casino companies we follow experienced a mixed Q2, with overall revenues surpassing analysts’ expectations by 2.8%.
Fortunately, the average share prices for these companies have remained strong, increasing by 7.9% since the latest earnings announcements.
Monarch’s Performance
Founded in 1993, Monarch operates upscale casinos and resorts, showcasing premium gaming, dining, and hospitality services. Monarch reported $136.9 million in revenues for Q2, marking a 6.8% year-on-year increase and exceeding analysts’ expectations by 5.4%. The company not only surpassed EPS estimates but also reported a solid increase in adjusted operating income.
Interestingly, since its earnings report, Monarch’s stock has risen 20.5% and currently trades at $105.12. Is it an opportune moment to invest in Monarch? Explore our comprehensive analysis of the earnings results here, available for free.
Red Rock Resorts
Established in 1976, Red Rock Resorts operates various casino resorts and entertainment venues primarily in Las Vegas. The company reported revenues of $526.3 million, representing an 8.2% increase year-on-year, and outperformed analysts’ expectations by 8.4%. It was an excellent quarter for Red Rock, with significant surpasses in both adjusted operating income and EBITDA estimates. The stock has increased by 14.6%, currently trading at $62.96. Is now the right time to invest in Red Rock Resorts? Access our full earnings analysis here, it’s free.
Wynn Resorts and Boyd Gaming
Known for its luxurious hotels and casinos, Wynn Resorts recorded flat revenues of $1.74 billion, slightly below expectations by 0.6%. The quarter was weaker than expected, with significant misses in both EPS and EBITDA estimates, yet the stock has risen 18.3% since the earnings report and currently trades at $126.75. Read more about Wynn Resorts’ performance here.
Boyd Gaming, a diversified gaming operator, reported revenues of $1.03 billion, a 6.9% increase year-on-year, exceeding expectations by 5.4%. It also performed well against EPS and adjusted operating income estimates. The stock has seen a 5.6% rise and currently trades at $87.12. Check out our in-depth report on Boyd Gaming here.
Bally’s Corporation
Based in Providence, Rhode Island, Bally’s Corporation reported revenues of $679.1 million, up 9.2% year-on-year, exceeding analysts’ expectations by 4.3%. However, despite this growth, Bally’s fell short in adjusted operating income and EPS estimates. The stock has remained steady since the report and currently trades at $10. Explore our actionable report on Bally’s here.
