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 MGM Resorts (NYSE: MGM).
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 2.8%.
Thankfully, share prices of the companies have been resilient as they are up 8.2% on average since the latest 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 $4.40 billion, up 1.8% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
Unsurprisingly, the stock is down 8.9% since reporting and currently trades at $34.53.
Is now the time to buy MGM Resorts? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $526.3 million, up 8.2% year on year, outperforming analysts’ expectations by 8.4%. The business had an exceptional quarter with a solid beat of analysts’ adjusted operating income estimates.
Red Rock Resorts pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 10.8% since reporting. It currently trades at $60.88.
Is now the time to buy Red Rock Resorts? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $1.74 billion, flat year on year, falling short of analysts’ expectations by 0.6%. It was a softer quarter as it posted and a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 24.9% since the results and currently trades at $133.86.
Read our full analysis of Wynn Resorts’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 $136.9 million, up 6.8% year on year. This result surpassed analysts’ expectations by 5.4%. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 20.7% since reporting and currently trades at $105.30.
Read our full, actionable report on Monarch here, it’s free.
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 $2.91 billion, up 2.7% year on year. This number beat analysts’ expectations by 1.2%. Aside from that, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.
The stock is down 5.4% since reporting and currently trades at $26.90.
Read our full, actionable report on Caesars Entertainment here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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