MCRI

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the consumer discretionary - casino operator stocks, including Monarch (NASDAQ:MCRI) and its peers. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Casino operators run gaming resorts and facilities that generate revenue from gambling, hospitality, food and beverage, and entertainment offerings. Tailwinds include pent-up travel demand, expansion into new jurisdictions legalizing gaming, and growing interest in integrated resort developments in Asia and the Middle East. However, the industry faces notable headwinds: heavy regulatory and licensing requirements limit operational flexibility, capital expenditure for property development and renovation is substantial, and revenue is highly sensitive to macroeconomic conditions and consumer confidence. Rising competition from online gambling platforms, regional saturation in mature markets, and geopolitical risks in key international jurisdictions add further uncertainty. The 8 consumer discretionary - casino operator stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.8%. While some consumer discretionary - casino operator stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.8% since the latest earnings results. Established in 1993, Monarch (NASDAQ:MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences. Monarch reported revenues of $142.6 million, up 4.2% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but a slight miss of analysts’ EBITDA estimates. CEO CommentJohn Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “Monarch delivered record second-quarter financial results. Second quarter net revenue increased 4.2% year-over-year reflecting growth in casino, F&B and hotel revenue. Adjusted EBITDA grew 3.3% compared to the same period last year. The second-quarter 2026 adjusted EBITDA margin remained near record levels at 37.2%, inclusive of a rise in employee benefit expenses, compared to 37.5% in Q2 2025. The second quarter revenue and adjusted EBITDA growth highlights our ability to drive sustained growth from our two properties. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 1.7% since reporting and currently trades at $122.31. Is now the time to buy Monarch? Access our full analysis of the earnings results here, it’s free. 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 $1.86 billion, up 6.9% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with a beat of analysts’ EPS estimates. Wynn Resorts scored the fastest revenue growth in the group. The market seems happy with the results as the stock is up 6.3% since reporting. It currently trades at $103.80. Is now the time to buy Wynn Resorts? Access our full analysis of the earnings results here, it’s free. 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 $2.99 billion, up 3% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates. The stock is flat since the results and currently trades at $29.75. Read our full analysis of Caesars Entertainment’s results here. Established in 1982, PENN Entertainment (NASDAQ:PENN) is a diversified American operator of casinos, sports betting, and entertainment venues. PENN Entertainment reported revenues of $1.86 billion, up 5.2% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates. The stock is down 2.5% since reporting and currently trades at $19.13. Read our full, actionable report on PENN Entertainment here, it’s free. 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 $510.3 million, down 3% year on year. This number beat analysts’ expectations by 2.2%. Zooming out, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates. Red Rock Resorts pulled off the biggest analyst estimate beat but had the slowest revenue growth among its peers. The stock is down 1.9% since reporting and currently trades at $63.04. Read our full, actionable report on Red Rock Resorts here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. 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Earlier this week, luxury casino and resort operator Monarch Casino & Resort (NASDAQ:MCRI) announced it would release quarterly earnings after the market close, following a prior quarter in which it exceeded analysts’ revenue, EPS, and EBITDA expectations. The upcoming report is drawing attention because analysts are projecting a slower pace of revenue growth than in the same period last year, testing whether Monarch can extend its recent operating momentum. Next, we’ll examine how expectations for slower year-on-year revenue growth shape Monarch’s investment narrative ahead of this earnings release. AI is about to change healthcare. These 39 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Monarch Casino & Resort, you need to believe in a focused, two-property operator that converts steady guest demand into disciplined earnings and consistent capital returns via dividends and buybacks. The near term hinges on whether the upcoming earnings release confirms that Q1’s strong revenue and EPS beat was not a one-off, even as analysts now look for a slower year-on-year revenue increase than last year’s comparable quarter. That softer growth outlook may cool expectations for rapid upside, but the share price has already eased in recent weeks, suggesting some of this caution is reflected. Key short term catalysts still sit around earnings quality, cash generation, and any changes to the regular US$1.20 annual dividend or repurchase pace, while risks center on slower revenue growth and recent insider selling. However, one recent pattern in insider activity is worth a closer look for shareholders. Despite retreating, Monarch Casino & Resort's shares might still be trading 32% above their fair value. Discover the potential downside here. Three Simply Wall St Community estimates span from around US$118 to a very large number, underlining how far apart private investors can be on Monarch’s worth. Set those views against the risk that revenue growth continues to moderate, and it becomes even more important to weigh several perspectives before deciding how durable the current earnings power might be. Explore 3 other fair value estimates on Monarch Casino & Resort - why the stock might be worth just $118.17! Disagree with this assessment? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Monarch Casino & Resort research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Monarch Casino & Resort research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Monarch Casino & Resort's overall financial health at a glance. Our daily scans reveal stocks with breakout potential. Don't miss this chance: The future of work is here. Discover the 33 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. Find 47 companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MCRI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Monarch Casino (MCRI) came out with quarterly earnings of $1.78 per share, beating the Zacks Consensus Estimate of $1.75 per share. This compares to earnings of $1.44 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.71%. A quarter ago, it was expected that this casino operator would post earnings of $1.15 per share when it actually produced earnings of $1.52, delivering a surprise of +32.17%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Monarch Casino, which belongs to the Zacks Gaming industry, posted revenues of $142.6 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.07%. This compares to year-ago revenues of $136.91 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Monarch Casino shares have added about 28.6% since the beginning of the year versus the S&P 500's gain of 8.9%. While Monarch Casino has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Monarch Casino was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.96 on $147.1 million in revenues for the coming quarter and $7.07 on $567.7 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Las Vegas Sands (LVS), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 22. This casino operator is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of -2.5%. The consensus EPS estimate for the quarter has been revised 0.2% higher over the last 30 days to the current level. Las Vegas Sands' revenues are expected to be $3.37 billion, up 6.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Monarch Casino & Resort, Inc. (MCRI) : Free Stock Analysis Report Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Declares Cash Dividend of $0.30 per Share Payable on September 15, 2026 RENO, Nev., July 20, 2026 (GLOBE NEWSWIRE) -- Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (“Monarch” or “the Company”) today reported operating results for the second quarter ended June 30, 2026, as summarized below: ($ in thousands, except per share data and percentages) (1) For the three months ended June 30, 2026 Net income and Diluted EPS were positively impacted by $2.4 million, or $0.13 per diluted EPS, from excess tax benefit on stock options compensation, resulting in a lower effective tax rate (17.4% in the second quarter of 2026 and 23.5% in the second quarter of 2025);(2) For the six months ended June 30, 2026 Net income and Diluted EPS were positively impacted by $2.6 million, or $0.14 per diluted EPS, from excess tax benefit on stock options compensation, resulting in a lower effective tax rate (19.7% in the first six months of 2026 and 23.1% in the first six months of 2025);(3) Definitions, disclosures and reconciliations of non-GAAP financial information are included later in the release. CEO CommentJohn Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “Monarch delivered record second-quarter financial results. Second quarter net revenue increased 4.2% year-over-year reflecting growth in casino, F&B and hotel revenue. Adjusted EBITDA grew 3.3% compared to the same period last year. The second-quarter 2026 adjusted EBITDA margin remained near record levels at 37.2%, inclusive of a rise in employee benefit expenses, compared to 37.5% in Q2 2025. The second quarter revenue and adjusted EBITDA growth highlights our ability to drive sustained growth from our two properties. “We continue to focus on excellence by delivering exceptional product and service to our guests, while maintaining operational efficiency. We remain committed to ongoing capital investments that enhance both properties and set the standard for luxury casino resorts in Northern Nevada and Colorado. “Monarch’s strong operating results and positive trends allows us to continue to return capital to stockholders. In the second quarter of 2026, we returned $5.4 million to stockholders through our quarterly cash dividend. At the same time, we increased our cash position by $18.1 million.” Summary of 2026 Second Quarter Operating ResultsIn the second quarter of 2026, the Company generated net revenue of $142.6 million compared to $136.9 million in the corresponding prior-year period. Casino revenue increased 2.5% compared to the same prior-year period, food and beverage (“F&B”) increased 3.1% and hotel revenue increased 13.0%, compared to the same prior-year period. F&B and hotel revenues benefited from higher available rooms at Atlantis in the second quarter of 2026 compared to the same period in 2025 and expanded convention and group business. Selling, general and administrative (“SG&A”) expense for the second quarter of 2026 was $28.6 million compared to $26.8 million in the corresponding prior-year period. As a percentage of net revenue, SG&A expense increased slightly to 20.0% from 19.6% in the corresponding prior-year period. Casino operating expense as a percentage of casino revenue decreased slightly to 35.5% during the second quarter of 2026 from 35.7% in the corresponding prior-year period primarily due to improved labor management and operational efficiency. During the second quarter of 2026, F&B operating expense as a percentage of F&B revenue increased to 72.9% from 70.3% in the corresponding prior-year period due to increases in labor and product cost per cover. Hotel operating expense as a percentage of hotel revenue decreased to 32.1% in the second quarter of 2026 compared to 34.3% in the corresponding prior-year period, primarily due to an increase in Average Daily Rate and improved costs per occupied room in the current period compared to the same period in the prior year. Net income for the second quarter of 2026 increased 20.4% and diluted EPS increased 23.6% compared to the same period last year. The Company generated consolidated Adjusted EBITDA of $53.0 million in the second quarter of 2026, which represents a $1.7 million, or 3.3% increase, compared to the same prior-year period. Credit Facility and LiquidityAs of June 30, 2026, the Company had cash and cash equivalents of $138.3 million and no borrowings against its credit facility. Capital expenditures of $5 million in the second quarter of 2026 were funded from operating cash flow and included costs related to ongoing maintenance capital projects at both properties. On June 15, 2026, the Company paid a cash dividend of $0.30 per share to its stockholders of record as of June 1, 2026 for a total of $5.4 million. The cash dividend was funded from operating cash flow. Monarch believes its strong balance sheet and free cash flow favorably positions the Company to continue investing in its properties, share repurchases and paying cash dividends. The Company has been diligently evaluating potential M&A transactions, which it believes could drive additional long-term value for stockholders. Quarterly Dividend DeclarationThe Company today announced a cash dividend of $0.30 per share of its outstanding common stock. The dividend is payable on September 15, 2026 to stockholders of record as of September 1, 2026. This cash dividend is part of the previously announced annual cash dividend of $1.20 per share payable in quarterly payments and subject to quarterly review and evaluation by the Company’s Board of Directors. Forward Looking StatementsThis press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "plan," "believe," "expect," "seem," "look," "look forward," "positioning," "future," "will," "confident" and similar references to future periods. Example of forward-looking statements include, among others, statements we make regarding: (i) the continuing strength of our balance sheet and our expected free cash flow; (ii) our expectations regarding continuing our dividend payments in the future; (iii) our expectations regarding the cash flow we expect to generate to fund our cash dividends to stockholders; and, (iv) our beliefs regarding the impact of our capital investment strategy and evaluation of potential strategic transactions on our long term success. Actual results and future events and conditions may differ materially from those described in any forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation: adverse impacts of outbreaks of contagious diseases on our business, financial condition and operating results; actions taken by government officials at the federal, state and/or local level with respect to the containment of disease outbreaks, including, without limitation, temporary or extended shutdowns, travel restrictions, social distancing and shelter-in-place orders; our ability to manage guest safety concerns in connection with an outbreak of contagious diseases; our ability to maintain compliance with the terms and conditions of our credit facilities and other material contracts in the event of any unexpected or unplanned events, such as temporary or extended shutdowns; access to available and reasonable financing on a timely basis; our ability to maintain strong working relationships with our regulators, employees, lenders, suppliers, insurance carriers, customers, and other stakeholders; impacts of any uninsured losses; changes in guest visitation or spending patterns due to economic conditions, health,  international relations  or other concerns; construction factors, including delays, disruptions, availability of labor and materials, increased costs of labor and materials, contractor disagreements, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters, building permit issues and other regulatory approvals or issues; ongoing disagreements over costs of and responsibility for delays and other construction related matters with our general contractor at Monarch Casino Resort Spa Black Hawk, PCL Construction Services, Inc. (“PCL”), including, as previously reported, the litigation against us by such contractor; the judgment entered in PCL’s favor and against Monarch in the above-mentioned litigation in the amount of $74,627,657 (the “Judgment”), in Case No. 2019cv33368 in the District Court for the State of Colorado, City and County of Denver (the “Court”), including the outcome of any post-judgment motions filed by PCL in the Court for further release; the outcome of our appeal of the Judgment; our potential need to post other bonds or other forms of surety to support our legal remedies; risks related to development and construction activities (including disputes with and defaults by contractors and subcontractors, construction, equipment or staffing problems and delays, shortages of materials or skilled labor, environmental, health and safety issues, weather and other hazards, site access matters, and unanticipated cost increases); our ability to generate sufficient operating cash flow to help finance our expansion plans; changes in laws mandating increases in minimum wages and employee benefits; changes in laws and regulations permitting expanded and other forms of gaming in our key markets; the effects of local and national economic, credit and capital market conditions on the economy in general and on the gaming industry and our business in particular, including predictions for a potential recession; the effects of labor shortages on our market position, growth and financial results; the potential of increases in state and federal taxation; the potential of increased regulatory and other burdens; guest acceptance of our expanded facilities once completed and the resulting impact on our market position, growth and financial results; competition in our target market areas; the impact of the recently enacted tariffs on our business, including the potential increase in our operating costs; broad-based inflation, including wage inflation; and the impact of the conflicts taking place in Ukraine, Israel, Iran, other areas of the Middle East and other parts of the world. Additional information concerning potential factors that could adversely affect all forward-looking statements, including the Company's financial results, is included in our Securities and Exchange Commission filings, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, which are available on our website at www.monarchcasino.com. About Monarch Casino & Resort, Inc.Monarch Casino & Resort, Inc., through its subsidiaries, owns and operates the Monarch Casino Resort Spa ("Monarch Black Hawk") in Black Hawk, Colorado, approximately 40 miles west of Denver and the Atlantis Casino Resort Spa ("Atlantis"), a hotel/casino facility in Reno, Nevada. For additional information on Monarch, visit the Company's website at www.monarchcasino.com. Atlantis features 817 guest rooms and suites, and approximately 61,000 square feet of casino space. The casino features approximately 1,200 slot and video poker machines; approximately 33 table games, including blackjack, craps, roulette, and others; a race and sports book; a 24-hour live keno lounge; and a poker room. It also includes eight food outlets; two gourmet coffee and pastry bars; a retail store; a 30,000 square foot health spa and salon with an enclosed year-round pool; an 8,000 square-foot family entertainment center; and approximately 52,000 square feet of banquet, convention and meeting room space. Monarch Black Hawk features 516 guest rooms and suites, and approximately 60,000 square feet of casino space. The resort offers approximately 1,100 slot machines; 37 table games; a poker room; keno; and a sports book. It also includes 10 bars and lounges, as well as four dining options: a twenty-four-hour full-service restaurant, a buffet-style restaurant, the Monarch Chophouse (a fine-dining steakhouse), and Bistro Mariposa (elevated Southwest cuisine), banquet and meeting room space, a retail store, a concierge lounge and an upscale spa and enclosed year-round pool located on the top floor of the tower. The resort is connected to a nine-story parking structure with approximately 1,350 parking spaces, and additional valet parking, with total property capacity of approximately 1,500 spaces. Contacts:John FarahiChief Executive Officer775/824-4401 or [email protected] Joseph Jaffoni, Christin Armacost JCIR212/835-8500 or [email protected] - financial tables follow - MONARCH CASINO & RESORT, INC. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (In thousands, unaudited) The following table sets forth a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to net income, a GAAP financial measure: (1) Adjusted EBITDA, a non-GAAP financial measure, consists of net income plus loss (gain) on disposal of assets, provision for income taxes, stock-based compensation expense, other one-time charges, construction litigation expenses, acquisition expenses, interest expense, depreciation and amortization less interest income, any benefit for income taxes and gain on disposal of assets. Adjusted EBITDA should not be construed as an alternative to operating income (as determined in accordance with US Generally Accepted Accounting Principles), as an indicator of the Company's operating performance, as an alternative to cash flows from operating activities (as determined in accordance with US GAAP) or as a measure of liquidity. This measure enables comparison of the Company's performance over multiple periods, as well as against the performance of other companies in our industry that report Adjusted EBITDA, although some companies do not calculate this measure in the same manner and, therefore, the measure as presented may not be comparable to similarly titled measures presented by other companies.(2) Amount included in the "Other operating items, net" in the Consolidated Statement of Income.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Investor focus is turning to Monarch Casino & Resort (MCRI) as it prepares to report earnings on Monday after the close, following a quarter in which it exceeded analyst expectations across revenue, EPS, and EBITDA. See our latest analysis for Monarch Casino & Resort. Despite a 24.11% 90 day share price return and an 18.37% total shareholder return over the past year, Monarch Casino & Resort has recently cooled, with the share price down 5.84% over the last month to $123.03 as investors weigh the strong previous earnings beat against expectations for slower revenue growth this quarter. If this upcoming results season has you looking beyond a single casino operator, it can be a good moment to broaden your watchlist and uncover 18 top founder-led companies Monarch Casino & Resort has pulled back from its highs even as it heads into an earnings report that follows a strong beat. Investors may be considering whether it makes more sense to step in at $123.03 now or wait for a clearer margin of safety. At a last close of $123.03, Monarch Casino & Resort is being valued at a P/E of 20x, which places the stock in an interesting middle ground between broader industry pricing and the levels implied by some valuation models. The P/E multiple reflects how much investors are paying today for each dollar of Monarch Casino & Resort's earnings, a common reference point for hospitality and gaming companies where earnings are a key focus. For Monarch, earnings quality and consistency matter, and the company is flagged as having high quality earnings with profits that have grown 46.7% over the past year and around 9% per year over the past five years. However, the 20x P/E carries mixed signals. On one side, Monarch Casino & Resort is described as good value relative to the broader US Hospitality industry, which trades at an average P/E of 24.1x, suggesting the stock is priced lower than many industry peers for each dollar of earnings. On the other side, the same 20x multiple is viewed as expensive relative to a closer peer set on 16.4x and to an estimated fair P/E of 16.3x, a level that the market could feasibly gravitate toward if sentiment or growth expectations cool. Compared to the Hospitality industry overall, the current 20x multiple looks more conservative, but against peers and the fair P/E estimate it looks stretched. That tension, paired with strong recent earnings growth but more modest earnings and revenue forecasts ahead, is what many investors will be weighing into this earnings report. Explore the SWS fair ratio for Monarch Casino & Resort Result: Price-to-earnings of 20x (OVERVALUED). However, there are still clear risks to watch, including any slowdown in Monarch Casino & Resort's revenue growth or pressure on earnings that challenges the current 20x P/E ratio. Find out about the key risks to this Monarch Casino & Resort narrative. While the 20x P/E suggests Monarch Casino & Resort might be priced ahead of its fair ratio of 16.3x, the SWS DCF model points the other way, with an estimated future cash flow value of $179.90 versus the current $123.03, implying the stock screens as undervalued on this measure. Which signal should carry more weight for you right now? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Monarch Casino & Resort for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 47 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With mixed signals around Monarch Casino & Resort's valuation and earnings outlook, it makes sense to move quickly, examine the underlying data, and decide where you stand by weighing the 3 key rewards and 1 important warning sign If Monarch Casino & Resort has sharpened your focus on valuation and quality, now is the time to broaden your opportunity set and compare it with other potential candidates. Spot potential mispricings early by scanning a curated set of 47 high quality undervalued stocks before other investors catch on. Strengthen your portfolio foundation by zeroing in on companies from the solid balance sheet and fundamentals stocks screener (47 results) that can better handle tough conditions. Boost your income focus by checking out higher yielding stocks in the 8 dividend fortresses while yields and entry points still look compelling. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MCRI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how consumer discretionary - casino operator stocks fared in Q1, starting with Monarch (NASDAQ:MCRI). The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Casino operators run gaming resorts and facilities that generate revenue from gambling, hospitality, food and beverage, and entertainment offerings. Tailwinds include pent-up travel demand, expansion into new jurisdictions legalizing gaming, and growing interest in integrated resort developments in Asia and the Middle East. However, the industry faces notable headwinds: heavy regulatory and licensing requirements limit operational flexibility, capital expenditure for property development and renovation is substantial, and revenue is highly sensitive to macroeconomic conditions and consumer confidence. Rising competition from online gambling platforms, regional saturation in mature markets, and geopolitical risks in key international jurisdictions add further uncertainty. The 9 consumer discretionary - casino operator stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.6%. While some consumer discretionary - casino operator stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results. Established in 1993, Monarch (NASDAQ:MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences. Monarch reported revenues of $136.6 million, up 8.9% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and adjusted operating income estimates. (1) Definitions, disclosures and reconciliations of non-GAAP financial information are included later in the release. CEO CommentJohn Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “Monarch delivered record first quarter financial results. First quarter net revenue and adjusted EBITDA increased year-over-year by 8.9% and 19.0%, respectively. First quarter adjusted EBITDA margin increased by approximately 300 basis points from 32.8% in the first quarter of 2025 to a record first quarter margin of 35.8% in 2026. The first quarter increases in revenue and adjusted EBITDA highlight our ability to drive sustained growth from our two properties. Monarch scored the biggest analyst estimates beat of the whole group. The stock is up 17.6% since reporting and currently trades at $115.90. Is now the time to buy Monarch? Access our full analysis of the earnings results here, it’s free. With its digital fingerprints on nearly every aspect of global gambling, from the Super Bowl bettor to the online poker aficionado, Flutter Entertainment (NASDAQ:FLUT) operates a portfolio of leading online sports betting and gaming brands including FanDuel, PokerStars, Paddy Power, and Sky Betting & Gaming. Flutter Entertainment reported revenues of $4.30 billion, up 17.4% year on year, outperforming analysts’ expectations by 4.9%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income and revenue estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 2.9% since reporting. It currently trades at $96.21. Is now the time to buy Flutter Entertainment? Access our full analysis of the earnings results here, it’s free. 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 $4.45 billion, up 4.2% year on year, exceeding analysts’ expectations by 2%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates. As expected, the stock is down 7.2% since the results and currently trades at $36.45. Read our full analysis of MGM Resorts’s results here. Established in 1982, PENN Entertainment (NASDAQ:PENN) is a diversified American operator of casinos, sports betting, and entertainment venues. PENN Entertainment reported revenues of $1.78 billion, up 6.4% year on year. This number topped analysts’ expectations by 1.7%. Taking a step back, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates. The stock is up 7.4% since reporting and currently trades at $15.87. Read our full, actionable report on PENN Entertainment here, it’s free. 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 $2.87 billion, up 2.7% year on year. This result beat analysts’ expectations by 0.6%. However, it was a slower quarter as it produced a significant miss of analysts’ EPS and EBITDA estimates. The stock is flat since reporting and currently trades at $27.38. Read our full, actionable report on Caesars Entertainment here, it’s free. 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Monarch Casino & Resort, Inc. (NASDAQ:MCRI) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 5.2% to hit US$137m. Monarch Casino & Resort also reported a statutory profit of US$1.52, which was an impressive 32% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. After the latest results, the six analysts covering Monarch Casino & Resort are now predicting revenues of US$574.1m in 2026. If met, this would reflect an okay 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 8.1% to US$6.65. Before this earnings report, the analysts had been forecasting revenues of US$560.5m and earnings per share (EPS) of US$5.88 in 2026. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in earnings per share in particular. View our latest analysis for Monarch Casino & Resort Despite these upgrades,the analysts have not made any major changes to their price target of US$111, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Monarch Casino & Resort analyst has a price target of US$125 per share, while the most pessimistic values it at US$97.00. This is a very narrow spread of estimates, implying either that Monarch Casino & Resort is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Monarch Casino & Resort's revenue growth is expected to slow, with the forecast 4.3% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Monarch Casino & Resort. The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Monarch Casino & Resort following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Monarch Casino & Resort analysts - going out to 2028, and you can see them free on our platform here. You still need to take note of risks, for example - Monarch Casino & Resort has 1 warning sign we think you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Monarch Casino (MCRI) came out with quarterly earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.15 per share. This compares to earnings of $1.05 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +32.17%. A quarter ago, it was expected that this casino operator would post earnings of $1.37 per share when it actually produced earnings of $1.25, delivering a surprise of -8.76%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Monarch Casino, which belongs to the Zacks Gaming industry, posted revenues of $136.55 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 5.77%. This compares to year-ago revenues of $125.39 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Monarch Casino shares have added about 3.6% since the beginning of the year versus the S&P 500's gain of 3.9%. While Monarch Casino has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Monarch Casino was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.53 on $138.1 million in revenues for the coming quarter and $5.95 on $558.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Churchill Downs (CHDN), another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 22. This racetrack operator and gambling company is expected to post quarterly earnings of $1.06 per share in its upcoming report, which represents a year-over-year change of -0.9%. The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. Churchill Downs' revenues are expected to be $662.01 million, up 3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Monarch Casino & Resort, Inc. (MCRI) : Free Stock Analysis Report Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research