Casino, tavern, and slot machine operator Golden Entertainment (NASDAQ:GDEN) will be announcing earnings results tomorrow after market hours. Here’s what to look for.
Golden Entertainment missed analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $161.2 million, down 37.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a miss of analysts’ Hotel revenue estimates.
Is Golden Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Golden Entertainment’s revenue to decline 27% year on year to $168.3 million, a further deceleration from the 17.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Golden Entertainment has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Golden Entertainment’s peers in the casino operator segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 4.9%, beating analysts’ expectations by 4.4%, and Wynn Resorts reported flat revenue, topping estimates by 2.8%. Monarch traded up 8% following the results while Wynn Resorts was also up 10.4%.
Read our full analysis of Monarch’s results here and Wynn Resorts’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the casino operator stocks have shown solid performance, the group has generally underperformed, with share prices down 3.4% on average over the last month. Golden Entertainment is down 5.3% during the same time and is heading into earnings with an average analyst price target of $36.71 (compared to the current share price of $31.44).
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