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3 Gaming Stocks Set to Beat Earnings Estimate in Q4
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The casino industry is likely to have benefited from robust demand for sports betting and iGaming. Despite rising Omicron cases, most companies have shown resilience and were involved in business modifications, streamlining of operations and digital initiatives.
Given that the pandemic had stopped customers from entering casinos in 2020, there has been a notable migration from offline to online gambling activities. iGaming usage has spiked owing to the availability of digital platforms to gamble as well as related entertainment and social networking. In this regard, casino operators are investing heavily in digital initiatives to improve reliability and customer services. Partnerships are being formed to handle the spurt in demand for online casino platforms. Given the onset of the pandemic scenario, the companies are emphasizing digital initiatives to boost customer experience. To this end, certain companies are accepting blockchain and cryptocurrencies in return for their services.
With the easing of government-mandated restrictions coupled with widespread deployment of vaccines, the casino industry is likely to have witnessed pent-up demand in gaming and entertainment offerings during fourth-quarter 2021. Stronger visitation from younger demographics and increased spend per visit have been aiding the industry. Although guest counts from destination travelers remain below pre-pandemic levels, a higher rate of hotel reservations and a pent-up demand for non-gaming amenities are indicating toward growth. Backed by the respective company-specific initiatives, it is worth mentioning that gaming revenues in the United States have surpassed pre-pandemic levels. Per the American Gaming Association, 2021 gaming revenues in the United States came in at $52.99 billion, up 77% and 21% from 2020 and 2019 levels, respectively.
Due to an increase in Omicron cases in Mid-December and early January 2022, a majority of the companies witnessed a drop in visitations, particularly by the older demographics. Recovery in Macau is likely to have been influenced by quarantine and travel restrictions until the local infections in China and Hong Kong are under control.
How to Make the Right Pick?
Given the wide range of companies in this space, the task is by no means easy. While it is impossible to be sure of the outperformers, our proprietary methodology — a positive Earnings ESP along with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — makes it relatively simple. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising in their upcoming earnings announcement. It shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.
Our Choices
Here are a few gaming companies that investors can check out.
NeoGames is likely to have benefitted from increased investments in technological solutions and operational capabilities. This along with an emphasis on iLottery programs coupled with the rollout of the multi-game progressive jackpot feature is likely to have aided the company’s performance in the to-be-reported quarter. Factors relating to seasonality, post-COVID patterns and increased marketing spend are likely to have influenced the company’s performance in the fourth quarter.
NeoGames surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 165.8%. The Zacks Consensus Estimate for fourth-quarter 2021 earnings line is pegged at 10 cents per share, suggesting a fall from earnings of 15 cents reported in the prior-year quarter. Earnings estimates for the to-be-reported quarter have been revised 11.1% upward in the past 30 days.
SciPlay Corporation is scheduled to report fourth-quarter 2021 results on Mar 1, 2022. The company has a Zacks Rank #3 and an Earnings ESP of +4.70%.
SciPlay’s fourth-quarter performance is likely to have benefitted from the strong performance of Jackpot Party Casino. Heightened player interaction backed by the introduction of new content, redesigns and game features is likely to have aided the company’s performance in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter 2021 earnings line is pegged at 25 cents per share, suggesting an improvement from earnings of 18 cents reported in the prior-year quarter.
Enthusiast Gaming Holdings Inc. is scheduled to report fourth-quarter 2021 results on Mar 24, 2022. The company has a Zacks Rank #3 and an Earnings ESP of +11.77%.
Enthusiast Gaming is likely to have benefitted from strength in direct sales, expansion of in-game purchasing opportunities and subscription offerings. Integration of assets through acquisition initiatives coupled with the ability to attract and retain paying subscribers is likely to have aided the company’s performance in the to-be-reported quarter. Backed by the initiatives, the company anticipates fourth-quarter revenues to grow 34% year over year.
The Zacks Consensus Estimate for fourth-quarter 2021 bottom line is pegged at a loss of 6 cents per share, suggesting no changes from the prior-year quarter’s figure.
Enthusiast Gaming Holdings Inc. Price and EPS Surprise
Image: Bigstock
3 Gaming Stocks Set to Beat Earnings Estimate in Q4
The casino industry is likely to have benefited from robust demand for sports betting and iGaming. Despite rising Omicron cases, most companies have shown resilience and were involved in business modifications, streamlining of operations and digital initiatives.
Given that the pandemic had stopped customers from entering casinos in 2020, there has been a notable migration from offline to online gambling activities. iGaming usage has spiked owing to the availability of digital platforms to gamble as well as related entertainment and social networking. In this regard, casino operators are investing heavily in digital initiatives to improve reliability and customer services. Partnerships are being formed to handle the spurt in demand for online casino platforms. Given the onset of the pandemic scenario, the companies are emphasizing digital initiatives to boost customer experience. To this end, certain companies are accepting blockchain and cryptocurrencies in return for their services.
With the easing of government-mandated restrictions coupled with widespread deployment of vaccines, the casino industry is likely to have witnessed pent-up demand in gaming and entertainment offerings during fourth-quarter 2021. Stronger visitation from younger demographics and increased spend per visit have been aiding the industry. Although guest counts from destination travelers remain below pre-pandemic levels, a higher rate of hotel reservations and a pent-up demand for non-gaming amenities are indicating toward growth. Backed by the respective company-specific initiatives, it is worth mentioning that gaming revenues in the United States have surpassed pre-pandemic levels. Per the American Gaming Association, 2021 gaming revenues in the United States came in at $52.99 billion, up 77% and 21% from 2020 and 2019 levels, respectively.
Due to an increase in Omicron cases in Mid-December and early January 2022, a majority of the companies witnessed a drop in visitations, particularly by the older demographics. Recovery in Macau is likely to have been influenced by quarantine and travel restrictions until the local infections in China and Hong Kong are under control.
How to Make the Right Pick?
Given the wide range of companies in this space, the task is by no means easy. While it is impossible to be sure of the outperformers, our proprietary methodology — a positive Earnings ESP along with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — makes it relatively simple. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising in their upcoming earnings announcement. It shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.
Our Choices
Here are a few gaming companies that investors can check out.
NeoGames S.A. (NGMS - Free Report) is scheduled to report fourth-quarter 2021 results on Mar 9, 2022. The company has a Zacks Rank #3 and an Earnings ESP of +15.79%. You can see the complete list of today’s Zacks #1 Rank stocks here.
NeoGames is likely to have benefitted from increased investments in technological solutions and operational capabilities. This along with an emphasis on iLottery programs coupled with the rollout of the multi-game progressive jackpot feature is likely to have aided the company’s performance in the to-be-reported quarter. Factors relating to seasonality, post-COVID patterns and increased marketing spend are likely to have influenced the company’s performance in the fourth quarter.
NeoGames surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 165.8%. The Zacks Consensus Estimate for fourth-quarter 2021 earnings line is pegged at 10 cents per share, suggesting a fall from earnings of 15 cents reported in the prior-year quarter. Earnings estimates for the to-be-reported quarter have been revised 11.1% upward in the past 30 days.
NeoGames S.A. Price and EPS Surprise
NeoGames S.A. price-eps-surprise | NeoGames S.A. Quote
SciPlay Corporation is scheduled to report fourth-quarter 2021 results on Mar 1, 2022. The company has a Zacks Rank #3 and an Earnings ESP of +4.70%.
SciPlay’s fourth-quarter performance is likely to have benefitted from the strong performance of Jackpot Party Casino. Heightened player interaction backed by the introduction of new content, redesigns and game features is likely to have aided the company’s performance in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter 2021 earnings line is pegged at 25 cents per share, suggesting an improvement from earnings of 18 cents reported in the prior-year quarter.
SciPlay Corporation Price and EPS Surprise
SciPlay Corporation price-eps-surprise | SciPlay Corporation Quote
Enthusiast Gaming Holdings Inc. is scheduled to report fourth-quarter 2021 results on Mar 24, 2022. The company has a Zacks Rank #3 and an Earnings ESP of +11.77%.
Enthusiast Gaming is likely to have benefitted from strength in direct sales, expansion of in-game purchasing opportunities and subscription offerings. Integration of assets through acquisition initiatives coupled with the ability to attract and retain paying subscribers is likely to have aided the company’s performance in the to-be-reported quarter. Backed by the initiatives, the company anticipates fourth-quarter revenues to grow 34% year over year.
The Zacks Consensus Estimate for fourth-quarter 2021 bottom line is pegged at a loss of 6 cents per share, suggesting no changes from the prior-year quarter’s figure.
Enthusiast Gaming Holdings Inc. Price and EPS Surprise
Enthusiast Gaming Holdings Inc. price-eps-surprise | Enthusiast Gaming Holdings Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.