{"id":235135,"date":"2022-10-02T07:00:38","date_gmt":"2022-10-02T12:00:38","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=235135"},"modified":"2022-10-05T17:19:24","modified_gmt":"2022-10-05T22:19:24","slug":"casino-stocks-could-see-some-q3-earnings-surprises","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/","title":{"rendered":"Casino Stocks Primed for Third-Quarter Earnings Beats"},"content":{"rendered":"

The third quarter was a forgettable one for casino stocks, as the group shrunk alongside the broader market. But those declines could belie a strong batch of earnings.<\/p>\n

\"casino
Traffic drives by the Paris on the Las Vegas Strip. An analyst says casino stocks could be primed for earnings surprises. (Image: Bloomberg<\/em>)<\/figcaption><\/figure>\n

With the arrival of the fourth quarter, so comes a new earnings season. Some analysts believe August’s gross gaming revenue (GGR) from the Las Vegas Strip implies a potential upside to casino operators\u2019 third-quarter profit estimates. Strip GGR in the eighth month of the year checked in at $659 million, representing a year-over-year increase of 5%, with gains in the slot, mass market table, and VIP play. That’s despite one less weekend day in the month.<\/p>\n

For September, we project $680m +6% YoY (+3% seq), which would result in 3Q22 +3% YoY and 3% seq. This compares to consensus EBITDA of +23% YoY and -6% seq for the Vegas group as most of the YoY growth is being driven by non-gaming revs, including record Strip revenue per available room (RevPAR),\u201d wrote Macquarie analyst Chad Beynon in a new report.<\/p><\/blockquote>\n

The Nevada Gaming Control Board (NGCB) hasn\u2019t yet delivered its September report. But the August update marked the 18th<\/sup> consecutive month<\/a> in which the state\u2019s casinos topped $1 billion in combined monthly revenue.<\/p>\n

Where Casino Stocks Earnings Opportunities Lie<\/h2>\n

Amid myriad challenges in Macau and no exposure to the US, Las Vegas Sands\u2019 (NYSE:LVS) third-quarter results will largely be evaluated through the lens of Marina Bay Sands in Singapore.<\/p>\n

\n

Rival Wynn Resorts (NASDAQ:WYNN) has some avenues for offsetting Macau exposure by way of Wynn and Encore on the Strip and Encore Boston Harbor. But when it comes to casino stocks, the current consensus is a preference for the names with exposure to Las Vegas, including the Strip, downtown, and locals<\/a>.<\/p>\n<\/div>\n

\u201cAgainst consensus estimates for companies exposed to LV Strip, LVL or Reno, we believe consensus appears to be achievable,\u201d added Beynon. \u201cAs we\u2019ve noted, LV searches remain strong, albeit with a short booking window. Overall \u2018searches\u2019 were +7% MoM in August, following 5% in June and 3% in July, with continued strength in the September\/October search period, albeit with slightly lower growth for searches over the next 30\u201390-day period.\u201d<\/p>\n

The analyst notes Strip operators could face difficulties following a brisk summer travel season. But Raiders home games, the start of the NHL season (Golden Knights), and a possible rebound in convention and meeting business are factors that could support GGR into year-end.<\/strong><\/p>\n

Casino Stocks to Examine as Earnings Season Looms<\/h2>\n

In terms of Strip exposure, MGM Resorts International (NYSE: MGM)<\/a> and Caesars Entertainment (NASDAQ:CZR) lead the way, as that area accounts for 47% and 45% of their respective revenues, according to Macquarie.<\/p>\n

Given the market sell-off, we continue believe there\u2019s value in the group. Off of current \u201923 EBITDA estimates, MGM and CZR are now trading sub 7x EV\/EBITDA, however, we note this multiple could rise if 2023 estimates are decreased further as sentiment continues to weaken,\u201d said Beynon.<\/p><\/blockquote>\n

While the Strip is the epicenter of the US gaming industry, other Nevada markets, including downtown Las Vegas, locals, and Reno, are showing signs of life, noted Beynon. Vibrancy downtown and in the Las Vegas locals market could bode well for Boyd Gaming (NYSE:BYD) and Red Rock Resorts (NASDAQ:RRR).<\/p>\n","protected":false},"excerpt":{"rendered":"

The third quarter was a forgettable one for casino stocks, as the group shrunk alongside the broader market. But those declines could belie a strong batch of earnings. With the arrival of the fourth quarter, so comes a new earnings season. Some analysts believe August’s gross gaming revenue (GGR) from the Las Vegas Strip implies […]<\/p>\n","protected":false},"author":46,"featured_media":235136,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,81886],"tags":[81897,81903,23],"acf":[],"yoast_head":"\nCasino Stocks Could See Some Q3 Earnings Surprises<\/title>\n<meta name=\"description\" content=\"Casino stocks with Las Vegas exposure could deliver Q3 earnings upside.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Casino Stocks Could See Some Q3 Earnings Surprises\" \/>\n<meta property=\"og:description\" content=\"Casino stocks with Las Vegas exposure could deliver Q3 earnings upside.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-10-02T12:00:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-10-05T22:19:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/strip.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/\",\"url\":\"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/\",\"name\":\"Casino Stocks Could See Some Q3 Earnings Surprises\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/strip.jpg\",\"datePublished\":\"2022-10-02T12:00:38+00:00\",\"dateModified\":\"2022-10-05T22:19:24+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Casino stocks with Las Vegas exposure could deliver Q3 earnings upside.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/strip.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/strip.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Traffic on the Las Vegas Strip. An analyst says casino stocks could be primed for earnings surprises. (Image: Bloomberg)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Casino Stocks Primed for Third-Quarter Earnings Beats\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Casino Stocks Could See Some Q3 Earnings Surprises","description":"Casino stocks with Las Vegas exposure could deliver Q3 earnings upside.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/","og_locale":"en_US","og_type":"article","og_title":"Casino Stocks Could See Some Q3 Earnings Surprises","og_description":"Casino stocks with Las Vegas exposure could deliver Q3 earnings upside.","og_url":"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2022-10-02T12:00:38+00:00","article_modified_time":"2022-10-05T22:19:24+00:00","og_image":[{"width":1200,"height":800,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/strip.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/","url":"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/","name":"Casino Stocks Could See Some Q3 Earnings Surprises","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/strip.jpg","datePublished":"2022-10-02T12:00:38+00:00","dateModified":"2022-10-05T22:19:24+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Casino stocks with Las Vegas exposure could deliver Q3 earnings upside.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/strip.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/strip.jpg","width":1200,"height":800,"caption":"Traffic on the Las Vegas Strip. An analyst says casino stocks could be primed for earnings surprises. (Image: Bloomberg)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/casino-stocks-could-see-some-q3-earnings-surprises\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Casino Stocks Primed for Third-Quarter Earnings Beats"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/235135"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=235135"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/235135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/235136"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=235135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=235135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=235135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}