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Monarch Casino (MCRI) Q2 Earnings Miss Estimates, Revenues Top

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Monarch Casino & Resort, Inc. (MCRI - Free Report) reported second-quarter 2023 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis.

Q2 Earnings & Revenues

In the quarter under review, the company reported adjusted earnings per share (EPS) of $1.14 missing the Zacks Consensus Estimate of $1.18. In the year-ago quarter, it had reported an adjusted EPS of 99 cents.

Quarterly revenues of $123.6 million surpassed the consensus mark by 0.1%. In the prior-year quarter, the company reported revenues of $115.3 million. During the quarter, the company benefited from strong guest visitation and spending levels in the Atlantis. This and the momentum in Black Hawk market expansion added to the positives.

Monarch Casino & Resort, Inc. Price, Consensus and EPS Surprise

 

Monarch Casino & Resort, Inc. Price, Consensus and EPS Surprise

Monarch Casino & Resort, Inc. price-consensus-eps-surprise-chart | Monarch Casino & Resort, Inc. Quote

 

During the quarter, Casino and food and beverage revenues increased 7.8% and 10.8% year over year to $68.9 million and $31.5 million, respectively. Hotel revenues during the quarter declined 1.1% year over year to $18.1 million. The downside was primarily caused by a fall in the average daily rate.

Operating Highlights

During the second quarter, income from operations amounted to $29.7 million compared with $25.7 million reported in the prior-year quarter.

Selling, general and administrative expenses in the second quarter came in at $25 million compared with $23.1 million reported in the prior-year period. The upside was primarily due to an increase in utility, insurance and marketing and advertising expenses.

During the quarter, Casino operating expenses (as a percentage of casino revenue) came in at 37.4% compared with 36.5% in the prior-year quarter. The upside was driven by increased labor expenses. Hotel operating expenses (as a percentage of hotel revenues) came in at 36.2% compared with 34.4% reported in the prior-year quarter.

F&B operating expenses (as a percentage of F&B revenues) came in at 72.3% compared with 77% reported in the prior-year quarter. The downside was primarily driven by a rise in average check and improved cost management.

Adjusted EBITDA in the second quarter came in at $42.1 million compared with $39.5 million reported in the prior-year quarter.

Balance Sheet

As of Jun 30, 2023, cash and cash equivalents totaled $35.1 million compared with $34.4 million as of Mar 31, 2023.

Total stockholders’ equity at the end of the second quarter totaled $481.8 million compared with $463.4 million at the end of first-quarter 2023.

The company declared a quarterly cash dividend of $0.30 per share. The dividend will be payable on Sep 15, 2023, to shareholders of record as of Sep 1, 2023.

Zacks Rank & Key Picks

Monarch Casino currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:

Trip.com Group Limited (TCOM - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 147.9%, on average. Shares of TCOM have increased 38.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Trip.com Group’s 2023 sales and EPS suggest an increase of 101.6% and 531%, respectively, from the year-ago period’s levels.

OneSpaWorld Holdings Limited (OSW - Free Report) carries a Zacks Rank #2 (Buy). OSW has a trailing four-quarter earnings surprise of 65.8%, on average. Shares of OSW have increased 64.6% in the past year.  

The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 33.9% and 89.3%, respectively, from the year-ago period’s levels.

Royal Caribbean Cruises Ltd. (RCL - Free Report) carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 26.4%, on average. Shares of RCL have surged 155.1% in the past year.

The Zacks Consensus Estimate for Royal Caribbean Cruises’ 2023 sales and EPS indicates a rise of 48.8% and 163.1%, respectively, from the year-ago period’s levels.

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