Casino Operator Q2 Earnings: PENN Entertainment (NASDAQ:PENN) is the Best in the Biz

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 PENN Entertainment (NASDAQ:PENN).

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 share prices up 1.8% on average since the latest earnings results.

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. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates.

Jay Snowden, Chief Executive Officer and President, said: “Our retail properties delivered solid results this quarter as our best-in-class team of operators continues to execute across our diverse portfolio of market leading assets. In our Interactive segment, top-of-funnel growth, improved risk and trading execution, and refined promotional strategies contributed to better-than-expected revenue and Adjusted EBITDA results.

Interestingly, the stock is up 9.8% since reporting and 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.

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, outperforming analysts’ expectations by 2.9%. 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.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11.6% since reporting. It 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.

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 had 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.

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 $486.4 million, up 16.9% year on year, surpassing analysts’ expectations by 2.2%. More broadly, it was a weaker quarter for the company with a miss of analysts’ earnings estimates.

Red Rock Resorts delivered the fastest revenue growth among its peers. The stock is down 7.7% since reporting and currently trades at $56.14.

Read our full, actionable report on Red Rock Resorts 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%. Taking a step back, it was a decent quarter for the company with a solid beat of analysts’ Non-Gaming revenue estimates.

Boyd Gaming pulled off 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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