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Gambling Stock Roundup: Q2 Earnings of WYNN, PENN, GDEN & DKNG

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In the past week, a handful of gaming companies reported their second-quarter 2021 results. In the same time frame, the industry gained 0.7%, compared with the S&P 500 growth of 1.2%. The industry is gradually getting out of the woods driven by reopening of economy and ramped-up vaccination process.

Recap of Last Week’s Most Important Stories

Wynn Resorts Q2 Earnings & Revenues Beat Estimates

Wynn Resorts, Limited (WYNN - Free Report) reported second-quarter 2021 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. The top and the bottom lines increased on a year-over-year basis. The company reported an adjusted loss of $1.12 per share, narrower than the Zacks Consensus Estimate of a loss of $1.41. In the prior-year quarter, it had reported adjusted loss of $6.14 per share.

Revenues during the second quarter totaled $990.1 million, beating the Zacks Consensus Estimate of $938 million by 5.5%. In the prior-year quarter, it reported revenues of $85.7 million. The company benefited from solid contributions of Wynn Palace, Wynn Macau and Las Vegas operations.

On the development front, Wynn Resorts continues to enhance its product with frequent new feature releases. Also, it is advancing its marketing and branding strategy ahead of the upcoming NFL 2021 season.

Wynn Resorts currently carries a Zacks Rank #3 (Hold).

Penn National’s Earnings & Revenues Top Estimates in Q2

Penn National Gaming, Inc. (PENN - Free Report) reported strong second-quarter 2021 results, wherein both earnings and revenues not only surpassed the Zacks Consensus Estimate but also improved on a year-over-year basis. Following the results, shares of the company rose 9% during trading hours on Aug 5.

The company is confident about its long-term growth strategy and Barstool profits. Following its Indiana launch during May 2021, the company expects to more than double its footprint by the start of the 2021 NFL season in early September, primarily on the back of upcoming launches in Colorado, New Jersey, Tennessee, Virginia and Arizona. Penn National is optimistic about expanding its operations to at least 10 states by the end of 2021.

At second quarter-end, cash and cash equivalents increased to $2,274.7 million from $2,062.2 million as of Mar 31, 2021. Bank debt as of Jun 30, 2021, was $1,595.9 million, down from $1,612 million on Mar 31, 2021.

Penn National’s currently has a Zacks Rank #2 (Buy).

Golden Entertainment Q2 Earnings & Revenues Beat Estimates

Golden Entertainment, Inc. (GDEN - Free Report) reported second-quarter 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. While the bottom line beat the consensus mark for second straight quarter, revenues surpassed the same for the fifth consecutive quarter.

The company reported adjusted earnings per share of $2.73, beating the Zacks Consensus Estimate of 45 cents. In the prior-year quarter, the company reported adjusted loss per share of $2.20. Revenues in the quarter were $292.5 million, surpassing the consensus mark of $248 million. Revenues increased a whopping 285% year over year.

Blake Sartini, chairman and CEO of Golden Entertainment, said, “Our second quarter operating results demonstrated improvement over our first quarter, as we generated record quarterly levels of revenue, net income and Adjusted EBITDA. These results highlight strong levels of visitation and spend at all of our properties, including The STRAT, combined with the margin improvement we have sustained over the last twelve months.”

Golden Entertainment sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

DraftKings Posts Wider-than-Expected Q2 Loss

DraftKings Inc. (DKNG - Free Report) reported second-quarter 2021 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. The bottom line lagged the consensus mark for the sixth straight quarter.

The company reported adjusted loss per share of 76 cents, wider than the consensus estimate of loss of 61 cents. In the prior-year quarter, the company reported adjusted loss per share of 55 cents. Revenues in the quarter amounted to $297.6 million, surpassing the consensus estimate of $241 million. Revenues improved 319.6% year over year.

DraftKings has a Zacks Rank #5 (Strong Sell).

Price Performance

The following table shows the price movement of the major gambling stocks in the last week and the last six months:
 

Zacks Investment Research
Image Source: Zacks Investment Research

In the past five trading sessions, shares of Century Casinos, Inc. (CNTY - Free Report) have appreciated the most.