Analysts upgrade outlook for Monarch Casino & Resort Inc after solid Q3 results
Reno-based operator’s revenue beat expectations by 25%, despite revenue falling 9% year-on-year.
Monarch Casino & Resort, Inc. has released Q3 results that included revenue and earnings per share beating analysts’ expectations, and on Monday those stock-watchers upgraded their predictions.
MCRI owns and operates the Atlantis Casino Resort Spa in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk, Colorado.
For Q3, the operator posted revenue of $59.9m, which topped expectations by 25% despite representing a 9% year-on-year fall, and earnings per share of $0.57, or 199% above what analysts had predicted.
In the wake of these results, the four analysts who cover the company increased their prediction of MCRI’s revenue in 2021 to $289.3m – which would be an increase of 54% over the past year. The analysts added they expect the company’s earnings per share to reach $2.82, which would be an increase of 250%.
Prior to Monarch’s Q3 earnings report, the same analysts had been predicting Monarch would post 2021 revenue of $286.4m and EPS of $2.40.
In conjunction with the company’s earnings release, John Farahi, Monarch co-chairman and CEO said the company’s business “continued its recovery” throughout Q3, as it grew gaming revenue 9%, strengthened adjusted EBITDA margins to 34.5% and delivered all-time record quarterly adjusted EBITDA of $20.7m.
But Farahi added: “Third quarter net revenue declined 9% as capacity and other COVID-related constraints impacted visitation and our ability to offer our guests a full range of services and amenities, particularly in hotel and food and beverage.”
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