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Gambling Stock Roundup: Focus on MGM, CNTY, PNK Q3 Earnings
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The gambling industry was busy with third-quarter 2017 financial releases last week.
MGM Resorts International's (MGM - Free Report) third-quarter 2017 earnings were in line with the Zacks Consensus Estimate while revenues topped the same.
Century Casinos, Inc. (CNTY - Free Report) came up with better-than-expected results with both earnings and revenues surpassing the consensus estimate.
Meanwhile, Pinnacle Entertainment, Inc. posted mixed results, wherein the bottom line came ahead of the Zacks Consensus Estimate while the top line lagged the same.
Recap of the Week’s Most Important Stories
1. MGM Resorts posted adjusted earnings of 33 cents per share in the third quarter, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 43.1% on a year-over-year basis.
This Zacks Rank #3 (Hold) company’s total revenues of $2.83 billion surpassed the consensus estimate of $2.77 billion by nearly 2% and increased 12.4% year over year. This improvement reflects a significant rise in revenues from its Las Vegas operations, partially offset by weak results at MGM China (read more: MGM Resorts' Q3 Earnings Meet Estimates, Revenues Beat).
2. Century Casinos reported third-quarter 2017 adjusted earnings per share of 31 cents, significantly surpassing the Zacks Consensus Estimate of 11 cents. Notably, this Zacks Rank #3 company’s earnings also improved considerably from the year-ago quarter figure of 8 cents on higher revenues. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Net revenues of $41 million topped the consensus mark by 5% and rose 19% from the prior-year quarter. The results reflect an increase in Canada, United States, Poland as well as corporate and other revenues.
3. Pinnacle Entertainment posted third-quarter 2017 adjusted earnings of 23 cents per share, outpacing the Zacks Consensus Estimate of 21 cents by 9.5%. Also, earnings compared favorably with the year-ago figure of a loss of 1 cent.
Net revenues of $647.4 million went up 8.8% year over year, owing to increased contribution from The Meadows Racetrack and Casino, and growth in the company's same-store portfolio of businesses. The reported figure, however, lagged the consensus mark by over 1%.
This Zacks Rank #3 company experienced an increase in revenues at the Midwest and the West segments on a year-over-year basis. However, the same declined at the South segment, given the impact of hurricane Harvey on L'Auberge Lake Charles.
Price Performance
The following table shows the price movement of the major gambling stocks in the last week and the last six months:
Company
Last Week
Last 6 Months
WYNN
1.7%
22.5%
LVS
1.3%
15.6%
MGM
3.7%
3.8%
MLCO
-2.5%
13.8%
MCRI
-2%
47%
CNTY
0.5%
8.7%
PNK
2.1%
33.1%
In the last five trading sessions, share price movement of major gambling stocks was predominantly positive. MGM Resorts and Pinnacle Entertainment gained 3.7% and 2.1%, respectively. However, Melco Resorts & Entertainment Limited (MLCO - Free Report) and Monarch Casino & Resort, Inc. (MCRI - Free Report) lost 2.5% and 2%, respectively.
In the last six months, the price performance of gambling stocks was impressive. Among stocks that appreciated the most were Monarch Casino & Resort and Pinnacle Entertainment, rallying 47% and 33.1%, respectively. Wynn Resorts Ltd. (WYNN - Free Report) also recorded a gain of 22.5% over the same time frame.
What’s Next in the Gambling Space?
We note that gambling stocks oscillated between gains and losses in recent sessions and with the earnings season approaching its end, investors can expect this volatility to continue in the coming days as well.
Will You Make a Fortune on the Shift to Electric Cars? Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Gambling Stock Roundup: Focus on MGM, CNTY, PNK Q3 Earnings
The gambling industry was busy with third-quarter 2017 financial releases last week.
MGM Resorts International's (MGM - Free Report) third-quarter 2017 earnings were in line with the Zacks Consensus Estimate while revenues topped the same.
Century Casinos, Inc. (CNTY - Free Report) came up with better-than-expected results with both earnings and revenues surpassing the consensus estimate.
Meanwhile, Pinnacle Entertainment, Inc. posted mixed results, wherein the bottom line came ahead of the Zacks Consensus Estimate while the top line lagged the same.
Recap of the Week’s Most Important Stories
1. MGM Resorts posted adjusted earnings of 33 cents per share in the third quarter, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 43.1% on a year-over-year basis.
This Zacks Rank #3 (Hold) company’s total revenues of $2.83 billion surpassed the consensus estimate of $2.77 billion by nearly 2% and increased 12.4% year over year. This improvement reflects a significant rise in revenues from its Las Vegas operations, partially offset by weak results at MGM China (read more: MGM Resorts' Q3 Earnings Meet Estimates, Revenues Beat).
2. Century Casinos reported third-quarter 2017 adjusted earnings per share of 31 cents, significantly surpassing the Zacks Consensus Estimate of 11 cents. Notably, this Zacks Rank #3 company’s earnings also improved considerably from the year-ago quarter figure of 8 cents on higher revenues. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Net revenues of $41 million topped the consensus mark by 5% and rose 19% from the prior-year quarter. The results reflect an increase in Canada, United States, Poland as well as corporate and other revenues.
3. Pinnacle Entertainment posted third-quarter 2017 adjusted earnings of 23 cents per share, outpacing the Zacks Consensus Estimate of 21 cents by 9.5%. Also, earnings compared favorably with the year-ago figure of a loss of 1 cent.
Net revenues of $647.4 million went up 8.8% year over year, owing to increased contribution from The Meadows Racetrack and Casino, and growth in the company's same-store portfolio of businesses. The reported figure, however, lagged the consensus mark by over 1%.
This Zacks Rank #3 company experienced an increase in revenues at the Midwest and the West segments on a year-over-year basis. However, the same declined at the South segment, given the impact of hurricane Harvey on L'Auberge Lake Charles.
Price Performance
The following table shows the price movement of the major gambling stocks in the last week and the last six months:
Company
Last Week
Last 6 Months
WYNN
1.7%
22.5%
LVS
1.3%
15.6%
MGM
3.7%
3.8%
MLCO
-2.5%
13.8%
MCRI
-2%
47%
CNTY
0.5%
8.7%
PNK
2.1%
33.1%
In the last five trading sessions, share price movement of major gambling stocks was predominantly positive. MGM Resorts and Pinnacle Entertainment gained 3.7% and 2.1%, respectively. However, Melco Resorts & Entertainment Limited (MLCO - Free Report) and Monarch Casino & Resort, Inc. (MCRI - Free Report) lost 2.5% and 2%, respectively.
In the last six months, the price performance of gambling stocks was impressive. Among stocks that appreciated the most were Monarch Casino & Resort and Pinnacle Entertainment, rallying 47% and 33.1%, respectively. Wynn Resorts Ltd. (WYNN - Free Report) also recorded a gain of 22.5% over the same time frame.
What’s Next in the Gambling Space?
We note that gambling stocks oscillated between gains and losses in recent sessions and with the earnings season approaching its end, investors can expect this volatility to continue in the coming days as well.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>