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Monarch Casino's (MCRI) Q1 Earnings & Revenues Lag Estimates
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Monarch Casino & Resort, Inc. (MCRI - Free Report) reported first-quarter 2024 results, wherein both earnings and revenues missed their respective Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. During the quarter, Monarch Black Hawk demonstrated revenue growth across its business segments and expanded its adjusted EBITDA margin. The property's market share continued to increase, backed by high-quality products and operational excellence.
The company highlighted strategic investments in Atlantis property, focusing on operational efficiency enhancements and facility upgrades. Despite facing tough competition in Reno, MCRI is optimistic, and anticipates its strategic direction and capital investments to secure long-term competitiveness and financial prosperity. It revealed plans to unveil 125 additional upgraded rooms by the second quarter of 2024. Additionally, it emphasized evaluating potential mergers and acquisitions to enhance long-term shareholder value.
Q1 Earnings & Revenues
The company reported adjusted earnings per share (EPS) of 93 cents, which missed the Zacks Consensus Estimate of 98 cents. In the year-ago quarter, it generated an adjusted EPS of 90 cents.
Monarch Casino & Resort, Inc. Price, Consensus and EPS Surprise
Revenues of $121.7 million missed the consensus mark by 0.4%. This figure contrasts with $116.6 million in the year-ago quarter. The increase was supported by Monarch Black Hawk's growth in market share.
Casino revenues increased 3.8% year over year to $69.4 million. Food and beverage revenues totaled $30.2 million compared with $29.3 million in the year-ago quarter.
Hotel revenues came in at $16.8 million compared with $15.5 million in the year-ago quarter.
Operating Highlights
Income from operations amounted to $23.8 million compared with $23.2 million in the prior-year quarter.
Selling, general and administrative expenses were $27.1 million compared with $25.1 million in the prior year. The upside was caused by increased labor, advertising and promotional expenses.
Casino operating expenses (as a percentage of casino revenues) amounted to 38% compared with 37.7% in the prior-year quarter. This was due to increased labor expenses and promotional allowances.
Hotel operating expenses (as a percentage of hotel revenues) totaled 35.6% compared with 41.3% in the prior-year quarter. F&B operating expenses (as a percentage of F&B revenues) were 74.8%, flat year over year.
Adjusted EBITDA in the first quarter came in at $38.5 million compared with $36.5 million in the prior-year quarter.
Balance Sheet
As of Mar 31, 2024, cash and cash equivalents totaled $39.5 million compared with $43.4 million as of Dec 31, 2023.
Total stockholders’ equity at the end of the first quarter totaled $508.9 million compared with $513.1 million at the end of fourth-quarter 2023.
The company declared a quarterly cash dividend of $0.30 per share. The dividend will be payable on Jun 15, 2024, to shareholders of record as of Jun 1, 2024.
Zacks Rank & Key Picks
Monarch Casino currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector have been discussed below.
The Zacks Consensus Estimate for JAKK’s 2025 sales indicates a rise of 1.9% from the year-ago levels.
Trip.com Group Limited (TCOM - Free Report) currently carries a Zacks Rank #2 (Buy). TCOM has a trailing four-quarter earnings surprise of 53.1%, on average. Shares of TCOM have risen 29.9% in the past year.
The Zacks Consensus Estimate for TCOM’s 2024 sales and EPS indicates a rise of 18.2% and 8%, respectively, from the year-ago levels.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently carries a Zacks Rank #2. RCL has a trailing four-quarter earnings surprise of 26.4%, on average. Shares of RCL have surged 98.5% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates a rise of 14.7% and 47.9%, respectively, from the year-ago levels.
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Monarch Casino's (MCRI) Q1 Earnings & Revenues Lag Estimates
Monarch Casino & Resort, Inc. (MCRI - Free Report) reported first-quarter 2024 results, wherein both earnings and revenues missed their respective Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. During the quarter, Monarch Black Hawk demonstrated revenue growth across its business segments and expanded its adjusted EBITDA margin. The property's market share continued to increase, backed by high-quality products and operational excellence.
The company highlighted strategic investments in Atlantis property, focusing on operational efficiency enhancements and facility upgrades. Despite facing tough competition in Reno, MCRI is optimistic, and anticipates its strategic direction and capital investments to secure long-term competitiveness and financial prosperity. It revealed plans to unveil 125 additional upgraded rooms by the second quarter of 2024. Additionally, it emphasized evaluating potential mergers and acquisitions to enhance long-term shareholder value.
Q1 Earnings & Revenues
The company reported adjusted earnings per share (EPS) of 93 cents, which missed the Zacks Consensus Estimate of 98 cents. In the year-ago quarter, it generated an adjusted EPS of 90 cents.
Monarch Casino & Resort, Inc. Price, Consensus and EPS Surprise
Monarch Casino & Resort, Inc. price-consensus-eps-surprise-chart | Monarch Casino & Resort, Inc. Quote
Revenues of $121.7 million missed the consensus mark by 0.4%. This figure contrasts with $116.6 million in the year-ago quarter. The increase was supported by Monarch Black Hawk's growth in market share.
Casino revenues increased 3.8% year over year to $69.4 million. Food and beverage revenues totaled $30.2 million compared with $29.3 million in the year-ago quarter.
Hotel revenues came in at $16.8 million compared with $15.5 million in the year-ago quarter.
Operating Highlights
Income from operations amounted to $23.8 million compared with $23.2 million in the prior-year quarter.
Selling, general and administrative expenses were $27.1 million compared with $25.1 million in the prior year. The upside was caused by increased labor, advertising and promotional expenses.
Casino operating expenses (as a percentage of casino revenues) amounted to 38% compared with 37.7% in the prior-year quarter. This was due to increased labor expenses and promotional allowances.
Hotel operating expenses (as a percentage of hotel revenues) totaled 35.6% compared with 41.3% in the prior-year quarter. F&B operating expenses (as a percentage of F&B revenues) were 74.8%, flat year over year.
Adjusted EBITDA in the first quarter came in at $38.5 million compared with $36.5 million in the prior-year quarter.
Balance Sheet
As of Mar 31, 2024, cash and cash equivalents totaled $39.5 million compared with $43.4 million as of Dec 31, 2023.
Total stockholders’ equity at the end of the first quarter totaled $508.9 million compared with $513.1 million at the end of fourth-quarter 2023.
The company declared a quarterly cash dividend of $0.30 per share. The dividend will be payable on Jun 15, 2024, to shareholders of record as of Jun 1, 2024.
Zacks Rank & Key Picks
Monarch Casino currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector have been discussed below.
JAKKS Pacific, Inc. (JAKK - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. It has a trailing four-quarter earnings surprise of 42.6%, on average. Shares of JAKK have risen 8.3% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for JAKK’s 2025 sales indicates a rise of 1.9% from the year-ago levels.
Trip.com Group Limited (TCOM - Free Report) currently carries a Zacks Rank #2 (Buy). TCOM has a trailing four-quarter earnings surprise of 53.1%, on average. Shares of TCOM have risen 29.9% in the past year.
The Zacks Consensus Estimate for TCOM’s 2024 sales and EPS indicates a rise of 18.2% and 8%, respectively, from the year-ago levels.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently carries a Zacks Rank #2. RCL has a trailing four-quarter earnings surprise of 26.4%, on average. Shares of RCL have surged 98.5% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates a rise of 14.7% and 47.9%, respectively, from the year-ago levels.