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Century Casinos (CNTY) Q4 Earnings Lag Estimates, Revenues Top

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Century Casinos, Inc. (CNTY - Free Report) reported mixed fourth-quarter 2018 results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same. However, both the top and bottom line increased year over year owing to robust performance of all its four reportable segments.

Adjusted earnings came in at 2 cents per share, missing the Zacks Consensus Estimate of 6 cents. In the prior-year quarter, the company had reported earnings per share of a penny. Revenues in the fourth quarter totaled $45.1 million, which outpaced the consensus mark of $43 million and also increased 15% year over year.

Segments Discussion

Century Casinos reports operating results under four segments — Canada, United States, Poland and Corporate and Other.

Canada: Revenues at this segment amounted to $15.7 million, up 3% from the prior-year period. Strong performance of Century Casino & Hotel Edmonton and Century Casino St. Albert led to the uptick. Also, adjusted EBITDA increased 1% to $5 million.

United States: Revenues at this segment increased 4% to $7.9 million. Backed by robust economy and tourist business, the company expects the segment to perform impressively in the quarters ahead. However, the segment’s adjusted EBITDA declined 3% to $1.6 million.

Poland: Revenues at the segment jumped 27% year over year to $19.5 million driven by robust business volumes and demand for casino gaming. Moreover, adjusted EBITDA increased 76% to $1.7 million.

Corporate and Other: Revenues at this segment surged 106% to nearly $2 million. However, adjusted EBITDA came in at a loss of $2.5 million compared with a loss of $2.1 million in the year-ago period.

Century Casinos, Inc. Price, Consensus and EPS Surprise

Other Financial Details

Cash and cash equivalents at the end of the fourth quarter declined to $45.6 million compared with $74.7 million at the end of Dec 31, 2017. Outstanding debt as of Dec 31, 2018, increased to $59.5 million from $56.7 million at the end of Dec 31, 2017.

Zacks Rank & Stocks to Consider

Century Casinos has a Zacks Rank #4 (Sell).

Better-ranked stocks in the same space include Melco Resorts & Entertainment Limited (MLCO - Free Report) , PlayAGS, Inc. (AGS - Free Report) and Zynga Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Melco Resorts & Entertainment, PlayAGS, and Zynga have an impressive long-term earnings growth rate of 18.7%, 12%, and 22.5%, respectively.

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