Reflecting On Casino Operator Stocks’ Q2 Earnings: MGM Resorts (NYSE:MGM)
Looking back on casino operator stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including MGM Resorts (NYSE:MGM) 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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.6%.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. However, casino operator stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
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. This print exceeded analysts’ expectations by 2.9%. Overall, 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.
"MGM Resorts continued to drive positive financial results and solid growth in the second quarter, with record MGM China Adjusted Property EBITDAR and further growth in Las Vegas where our Marriott relationship continues to exceed expectations and our meetings and convention business continues to strengthen thanks to our recently completed remodel of Mandalay Bay," said Bill Hornbuckle, CEO and President of MGM Resorts International.
Unsurprisingly, the stock is down 11.6% since reporting and currently trades at $37.99.
Is now the time to buy MGM Resorts? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $1.66 billion, flat year on year, in line with analysts’ expectations. It was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 9.8% since reporting. It currently trades at $18.95.
Is now the time to buy PENN Entertainment? 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 estimates.
Golden Entertainment posted the slowest revenue growth in the group. Interestingly, the stock is up 12.5% since the results and currently trades at $31.67.
Read our full analysis of Golden Entertainment’s results here.
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 $621.7 million, up 2.5% year on year, falling short of analysts’ expectations by 3.1%. Revenue aside, it was a strong quarter for the company with a solid beat of analysts’ earnings estimates.
Bally's had the weakest performance against analyst estimates among its peers. The stock is flat since reporting and currently trades at $17.07.
Read our full, actionable report on Bally's here, it’s free.
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, surpassing analysts’ expectations by 6.4%. Overall, it was a decent quarter for the company with a solid beat of analysts’ Non-Gaming revenue estimates.
Boyd Gaming scored the biggest analyst estimates beat among its peers. The stock is up 2.4% since reporting and currently trades at $59.92.
Read our full, actionable report on Boyd Gaming here, it’s free.
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