Unpacking Q1 Earnings: Bally's (NYSE:BALY) In The Context Of Other Casino Operator Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Bally's (NYSE:BALY) and the best and worst performers in the casino operator industry.

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. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 2.7% on average 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 $611.1 million, down 1.2% year on year. This print exceeded analysts’ expectations by 1.5%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.

Unsurprisingly, the stock is down 12.3% since reporting and currently trades at $9.78.

Is now the time to buy Bally's? Access our full analysis of the earnings results here, it’s free.

Best Q1: 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 $125.4 million, up 3.1% year on year, outperforming analysts’ expectations by 2.1%. The business had a strong quarter with a decent beat of analysts’ EPS and EBITDA estimates.

Monarch pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 7.6% since reporting. It currently trades at $81.71.

Is now the time to buy Monarch? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: 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 $1.67 billion, up 4.1% year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

As expected, the stock is down 7.7% since the results and currently trades at $14.50.

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

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 $4.28 billion, down 2.4% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $31.38.

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

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 $497.9 million, up 1.8% year on year. This result beat analysts’ expectations by 0.6%. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts’ EPS estimates but a miss of analysts’ Casino revenue estimates.

The stock is up 9.2% since reporting and currently trades at $45.99.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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