Yahoo Finance Q1 Rundown: MGM Resorts (NYSE:MGM) Vs Other Casino Operator Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at 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 slower Q1; on average, revenues were in line with analyst consensus estimates. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and casino operator stocks have had a rough stretch, with share prices down 7.4% on average since the previous 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 $4.38 billion, up 13.2% year on year, topping analysts' expectations by 3.7%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and a decent beat of analysts' revenue estimates.
"Our strategic growth plan to drive sustainable free cash flow from our resort operations, develop free cash flow by investing in international digital and luxury integrated resorts, and return capital to shareholders through share repurchases continued to develop in the first quarter of 2024," said Bill Hornbuckle, Chief Executive Officer & President of MGM Resorts International.
MGM Resorts scored the biggest analyst estimates beat of the whole group. The stock is down 0.5% since the results and currently trades at $39.52.
Is now the time to buy MGM Resorts? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $174 million, down 37.4% year on year, outperforming analysts' expectations by 3.2%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
Golden Entertainment had the slowest revenue growth among its peers. The stock is down 7.3% since the results and currently trades at $28.41.
Is now the time to buy Golden Entertainment? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $2.74 billion, down 3.1% year on year, falling short of analysts' expectations by 3.1%. It was a weak quarter for the company, with a miss of analysts' earnings and revenue estimates.
Caesars Entertainment had the weakest performance against analyst estimates in the group. The stock is down 7.8% since the results and currently trades at $33.09.
Read our full analysis of Caesars Entertainment's results here.
Monarch (NASDAQ:MCRI)
Established in 1993, Monarch (NASDAQ:MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.
Monarch reported revenues of $121.7 million, up 4.3% year on year, falling short of analysts' expectations by 0.5%. It was a slower quarter for the company, with a miss of analysts' revenue and earnings estimates.
The stock is down 6.2% since the results and currently trades at $65.09.
Read our full, actionable report on Monarch 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 $960.5 million, down 0.4% year on year, in line with analysts' expectations. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
The stock is down 18.1% since the results and currently trades at $51.51.
Read our full, actionable report on Boyd Gaming here, it's free.
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