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 PENN Entertainment (NASDAQ:PENN) 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 Q3. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.6% since the latest earnings results.

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 $1.64 billion, up 1.2% year on year. This print fell short of analysts’ expectations by 1%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

Jay Snowden, Chief Executive Officer and President, said: “PENN’s third quarter results were consistent with the preliminary estimates we disclosed last month in connection with our investor event in Las Vegas. Stable consumer demand in our retail business was offset by unfavorable hold in our Northeast segment and volume declines in our South segment associated with severe weather disruptions and accelerated hotel remodeling. The fourth quarter is off to a stronger start, led by several markets including Michigan, Ohio, and St. Louis. In the third quarter, our Interactive segment benefited from better-than-expected hold, driven by a higher parlay mix from our improving product and lower promotional expenses. Additionally, on October 30th, we launched account linking between ESPN BET and ESPN, which is foundational for creating a personalized sports betting experience across the ESPN ecosystem.

Unsurprisingly, the stock is down 3.7% since reporting and currently trades at $18.53.

Read our full report on PENN Entertainment here, it’s free.

Best Q3: 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 $961.2 million, up 6.4% year on year, outperforming analysts’ expectations by 4.8%. The business had a strong quarter with a decent beat of analysts’ EBITDA estimates.

Boyd Gaming pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 10.2% since reporting. It currently trades at $70.89.

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

Weakest Q3: 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 $1.69 billion, up 1.3% year on year, falling short of analysts’ expectations by 2%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.

As expected, the stock is down 7.2% since the results and currently trades at $88.80.

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 $137.9 million, up 3.7% year on year. This number surpassed analysts’ expectations by 2.9%. Overall, it was a strong quarter as it also put up a decent beat of analysts’ EPS and EBITDA estimates.

The stock is up 8.3% since reporting and currently trades at $79.78.

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

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 $161.2 million, down 37.4% year on year. This result missed analysts’ expectations by 1.1%. More broadly, it was a mixed quarter as it also recorded an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.

Golden Entertainment had the slowest revenue growth among its peers. The stock is down 9.1% since reporting and currently trades at $28.

Read our full, actionable report on Golden Entertainment here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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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