Monarch Casino & Resort Earnings Preview

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Monarch Casino & Resort (NAS: MCRI) beat estimates by $0.09 last quarter and investors are hoping it can beat them again. The company will unveil its latest earnings on Wednesday. Monarch Casino & Resort, with its subsidiary, owns and operates the tropically themed Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Monarch Casino & Resort with two of three analysts rating it hold. Analysts don't like Monarch Casino & Resort as much as competitor Century Casinos overall. Two out of two analysts rate Century Casinos a buy compared to one of three for Monarch Casino & Resort. Analysts haven't adjusted their rating of Monarch Casino & Resort for the past three months.
  • Revenue forecasts: On average, analysts predict $38 million in revenue this quarter. That would represent a rise of 0.8% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.17 per share. Estimates range from $0.15 to $0.20.

What our community says:
CAPS All-Stars are solidly backing the stock with 93.1% giving it an outperform rating. The community at large concurs with the All-Stars with 80.2% granting it a rating of outperform. Fools are bullish on Monarch Casino & Resort, though the message boards have been quiet lately with only 46 posts in the past 30 days. Monarch Casino & Resort's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Monarch Casino & Resort's profit has risen year over year by an average of more than twofold over the past five quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

54.8%

50.9%

49.8%

54.6%

Operating Margin

15.3%

8.0%

2.8%

11.7%

Net Margin

9.6%

4.6%

1.4%

7.1%

For all our Monarch Casino & Resort-specific analysis, including earnings and beyond, add Monarch Casino & Resort to My Watchlist.

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At the time this article was published

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