As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the casino operator industry, including Boyd Gaming (NYSE: BYD) 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 Q4. As a group, revenues beat analysts’ consensus estimates by 0.9%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.6% since the latest earnings results.
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 $1.04 billion, up 9.1% year on year. This print exceeded analysts’ expectations by 4%. Overall, it was a strong quarter for the company with a decent beat of analysts’ EPS and EBITDA estimates.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "Our Company continued to deliver solid results in the fourth quarter, consistent with our strong full-year performance. Our diversified business model, strong operating efficiencies and contributions from our recent property investments drove revenue and EBITDAR growth on a Companywide basis during the fourth quarter, as we maintained property-level operating margins of over 40%. We also continued our balanced approach to capital allocation throughout 2024, investing in our properties nationwide, returning nearly $750 million to shareholders, and maintaining the strongest balance sheet in our Company's history. As we mark the conclusion of another successful year, we are proud of the strong foundation we have built and are confident in our strategy to deliver long-term value for our shareholders."
The stock is down 16% since reporting and currently trades at $66.02.
Is now the time to buy Boyd Gaming? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $134.5 million, up 4.9% year on year, outperforming analysts’ expectations by 4.4%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Monarch pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.9% since reporting. It currently trades at $78.09.
Is now the time to buy Monarch? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $580.4 million, down 5.1% year on year, falling short of analysts’ expectations by 1.9%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
The stock is flat since the results and currently trades at $13.
Read our full analysis of Bally’s results here.
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 $2.80 billion, flat year on year. This print missed analysts’ expectations by 1.1%. Zooming out, it was actually a very strong quarter as it put up a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 28.3% since reporting and currently trades at $25.
Read our full, actionable report on Caesars Entertainment here, it’s free.
Wynn Resorts (NASDAQ: WYNN)
Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ: WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.
Wynn Resorts reported revenues of $1.84 billion, flat year on year. This number surpassed analysts’ expectations by 2.8%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 4.4% since reporting and currently trades at $84.02.
Read our full, actionable report on Wynn Resorts here, it’s free.
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