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Monarch Casino Q3 revenue misses estimates despite higher casino sales

By Reuters News


Overview

  • US casino operator's Q3 revenue rose 2.4% yr/yr but missed analyst expectations

  • Adjusted EBITDA for Q3 grew 2.1% yr/yr but slightly missed analyst expectations

  • Company repurchased $37 mln in shares during Q3


Outlook

  • Company plans continued investment in technology and property enhancements at both locations

  • Company expects to continue share repurchases and quarterly cash dividends

  • Company is evaluating potential M&A transactions for long-term value


Result Drivers

  • CASINO, F&B, HOTEL GROWTH - Co said Q3 revenue growth was driven by increases in casino, food and beverage, and hotel revenues

  • HIGH MARGINS - Adjusted EBITDA margin remained near record levels, supporting profitability

  • HIGHER SG&A EXPENSES - SG&A expense as a percentage of net revenue increased due to higher legal and employee-related costs


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$146.27 mln

$147.96 mln (7 Analysts)

Q3 EPS

$1.76

Q3 Adjusted EBITDA

Slight Miss*

$56.02 mln

$56.34 mln (7 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the casinos & gaming peer group is "buy."

  • Wall Street's median 12-month price target for Monarch Casino & Resort, Inc. is $125.00, about 7.6% above its October 26 closing price of $116.15

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago


Reuters Recommended Reads

  • Oct 27 - Australia's Star Entertainment surges 13% as cost cuts, casino strength drive profit

  • Oct 27 - Hilton misses quarterly revenue estimates, warns of Mideast impact


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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