Reflecting On Casino Operator Stocks’ Q2 Earnings: Bally's (NYSE:BALY)

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how casino operator stocks fared in Q2, starting with Bally's (NYSE:BALY).

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%.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and while some casino operator stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.

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. This print fell short of analysts’ expectations by 3.1%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ operating margin estimates but a miss of analysts’ earnings estimates.

Robeson Reeves, Bally’s Chief Executive Officer, commented, “Bally’s delivered solid 2024 second quarter operating results during what remains an active period for our Company. Consolidated revenue grew 2.5% to $621.7 million, driven by 3.0% growth in Casinos & Resorts (“C&R”) revenue, 94.7% growth in North America Interactive revenue, and 9% UK revenue growth, a record performance."

Bally's delivered the weakest performance against analyst estimates of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $17.19.

Read our full report on Bally's 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. The business had a very strong quarter with an impressive beat of analysts’ earnings estimates.

The market seems content with the results as the stock is up 2.4% since reporting. It currently trades at $17.67.

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 disappointing quarter as it posted a miss of analysts’ earnings estimates.

Golden Entertainment delivered the slowest revenue growth in the group. Interestingly, the stock is up 11.8% since the results and currently trades at $31.46.

Read our full analysis of Golden Entertainment’s results here.

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. This print surpassed analysts’ expectations by 6.4%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ Non-Gaming revenue estimates and a decent beat of analysts’ earnings estimates.

Boyd Gaming scored the biggest analyst estimates beat among its peers. The stock is up 3.1% since reporting and currently trades at $60.33.

Read our full, actionable report on Boyd Gaming here, it’s free.

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 topped analysts’ expectations by 2.9%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ earnings estimates and a decent beat of analysts’ Hotel revenue estimates.

The stock is down 18.5% since reporting and currently trades at $35.03.

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

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