Wrapping up Q2 earnings, we look at the numbers and key takeaways for the casino operator stocks, including Red Rock Resorts (NASDAQ:RRR) and its peers.

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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.6%.

The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

Thankfully, casino operator stocks have been resilient with share prices up 5.1% on average since the latest earnings results.

Red Rock Resorts (NASDAQ:RRR)

Founded in 1976, Red Rock Resorts (NASDAQ:RRR) operates a range of casino resorts and entertainment properties, primarily in the Las Vegas metropolitan area.

Red Rock Resorts reported revenues of $486.4 million, up 16.9% year on year. This print exceeded analysts’ expectations by 2.2%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ earnings estimates.

Red Rock Resorts pulled off the fastest revenue growth of the whole group. Even though it had a great quarter relative to its peers, the market seems discontent with the results. The stock is down 12.6% since reporting and currently trades at $37.56.

Read our full report on Red Rock Resorts here, it’s free.

Best Q2: MGM Resorts (NYSE:MGM)

Operating several properties on the Las Vegas Strip, MGM Resorts (NYSE:MGM) is a global hospitality and entertainment company known for its resorts and casinos.

MGM Resorts reported revenues of $4.33 billion, up 9.8% year on year, outperforming analysts’ expectations by 2.9%. The business had a very strong quarter with an impressive beat of analysts’ earnings estimates and a decent beat of analysts’ Hotel revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12.6% since reporting. It currently trades at $37.56.

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

Weakest Q2: 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 $167.3 million, down 41.6% year on year, falling short of analysts’ expectations by 2.9%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.

Golden Entertainment delivered the slowest revenue growth in the group. Interestingly, the stock is up 16.5% since the results and currently trades at $32.79.

Read our full analysis of Golden Entertainment’s results here.

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 $1.73 billion, up 8.6% year on year. This print was in line with analysts’ expectations. Aside from that, it was a slower quarter as it produced a miss of analysts’ earnings estimates.

The stock is up 5.1% since reporting and currently trades at $80.18.

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

Caesars Entertainment (NASDAQ:CZR)

Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ:CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties.

Caesars Entertainment reported revenues of $2.83 billion, down 1.7% year on year. This number missed analysts’ expectations by 1%. Overall, it was a softer quarter as it also logged a miss of analysts’ earnings estimates.

The stock is up 11% since reporting and currently trades at $40.94.

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

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