Monarch Casino & Resort, Inc. (MCRI - Free Report) reported dismal third-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and the bottom line declined on a year-over-year basis.
Q3 Earnings & Revenues
In the quarter under review, the company reported adjusted earnings per share (EPS) of $1.38, missing the Zacks Consensus Estimate of $1.46. In the year-ago quarter, it generated an adjusted EPS of $1.41.
Quarterly revenues of $133 million missed the consensus mark by 1.7%. In the prior-year quarter, the company reported revenues of $133.7 million. The company’s performance during the quarter was impacted by competitive pressure in Reno and the macroeconomic environment.
During the third quarter, Casino revenues declined 4% year over year to $73.8 million. Hotel revenues during the quarter came in at $20.6 million compared with $20.8 million reported in the year-ago quarter. Food and beverage revenues during the quarter came in at $33 million compared with $31.3 million reported in the year-ago quarter.
Operating Highlights
During the third quarter, income from operations amounted to $31.9 million compared with $36.4 million reported in the prior-year quarter.
Selling, general and administrative expenses in the third quarter came in at $27.1 million compared with $25.7 million reported in the prior-year period. The upside was due to increased labor, utility and promotional expenses.
During the quarter, Casino operating expenses (as a percentage of casino revenue) came in at 34.5% compared with 33.1% in the prior-year quarter. The upside was driven by increased labor expenses and promotional allowances. Hotel operating expenses (as a percentage of hotel revenues) came in at 34.8% compared with 34.2% reported in the prior-year quarter.
F&B operating expenses (as a percentage of F&B revenues) came in at 70.8% compared with 72.4% reported in the prior-year quarter. The downside was primarily caused by improved cost management and menu price increases.
Adjusted EBITDA in the third quarter came in at $49.2 million compared with $51.7 million reported in the prior-year quarter.
Balance Sheet
As of Sep 30, 2023, cash and cash equivalents totaled $33.9 million compared with $38.8 million as of Dec 31, 2022.
Total stockholders’ equity at the end of the third quarter totaled $502.4 million compared with $481.8 million at the end of second-quarter 2023.
The company declared a quarterly cash dividend of $0.30 per share. The dividend will be payable on Dec 15, 2023, to shareholders of record as of Dec 1, 2023.
Zacks Rank & Key Picks
Monarch Casino currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
Live Nation Entertainment, Inc. (LYV - Free Report) sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 34.6% on average. Shares of LYV have increased by 3.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a rise of 21.6% and 59.4%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have increased by 20.4% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 44.5% and 117.9%, respectively, from the year-ago period’s levels.
Choice Hotels International, Inc. (CHH - Free Report) carries a Zacks Rank #2 (Buy). CHH has a trailing four-quarter earnings surprise of 3.1% on average. Shares of the company have declined 7.5% in the past year.
The Zacks Consensus Estimate for CHH’s 2023 sales and EPS indicates a rise of 10.8% and 13.9%, respectively, from the year-ago period’s levels.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Monarch Casino & Resort, Inc. (MCRI - Free Report) reported dismal third-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and the bottom line declined on a year-over-year basis.
Q3 Earnings & Revenues
In the quarter under review, the company reported adjusted earnings per share (EPS) of $1.38, missing the Zacks Consensus Estimate of $1.46. In the year-ago quarter, it generated an adjusted EPS of $1.41.
Quarterly revenues of $133 million missed the consensus mark by 1.7%. In the prior-year quarter, the company reported revenues of $133.7 million. The company’s performance during the quarter was impacted by competitive pressure in Reno and the macroeconomic environment.
During the third quarter, Casino revenues declined 4% year over year to $73.8 million. Hotel revenues during the quarter came in at $20.6 million compared with $20.8 million reported in the year-ago quarter. Food and beverage revenues during the quarter came in at $33 million compared with $31.3 million reported in the year-ago quarter.
Operating Highlights
During the third quarter, income from operations amounted to $31.9 million compared with $36.4 million reported in the prior-year quarter.
Selling, general and administrative expenses in the third quarter came in at $27.1 million compared with $25.7 million reported in the prior-year period. The upside was due to increased labor, utility and promotional expenses.
During the quarter, Casino operating expenses (as a percentage of casino revenue) came in at 34.5% compared with 33.1% in the prior-year quarter. The upside was driven by increased labor expenses and promotional allowances. Hotel operating expenses (as a percentage of hotel revenues) came in at 34.8% compared with 34.2% reported in the prior-year quarter.
F&B operating expenses (as a percentage of F&B revenues) came in at 70.8% compared with 72.4% reported in the prior-year quarter. The downside was primarily caused by improved cost management and menu price increases.
Adjusted EBITDA in the third quarter came in at $49.2 million compared with $51.7 million reported in the prior-year quarter.
Balance Sheet
As of Sep 30, 2023, cash and cash equivalents totaled $33.9 million compared with $38.8 million as of Dec 31, 2022.
Total stockholders’ equity at the end of the third quarter totaled $502.4 million compared with $481.8 million at the end of second-quarter 2023.
The company declared a quarterly cash dividend of $0.30 per share. The dividend will be payable on Dec 15, 2023, to shareholders of record as of Dec 1, 2023.
Zacks Rank & Key Picks
Monarch Casino currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
Live Nation Entertainment, Inc. (LYV - Free Report) sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 34.6% on average. Shares of LYV have increased by 3.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a rise of 21.6% and 59.4%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have increased by 20.4% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 44.5% and 117.9%, respectively, from the year-ago period’s levels.
Choice Hotels International, Inc. (CHH - Free Report) carries a Zacks Rank #2 (Buy). CHH has a trailing four-quarter earnings surprise of 3.1% on average. Shares of the company have declined 7.5% in the past year.
The Zacks Consensus Estimate for CHH’s 2023 sales and EPS indicates a rise of 10.8% and 13.9%, respectively, from the year-ago period’s levels.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Get the latest research report on CHH - FREE
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