Gaming, betting and entertainment company Bally's Corporation (NYSE:BALY) will be reporting earnings tomorrow after market close. Here's what you need to know.

Bally's missed analysts' revenue expectations by 1.8% last quarter, reporting revenues of $611.7 million, up 6.1% year on year. It was a weak quarter for the company, with a miss of analysts' revenue and earnings estimates.

Is Bally's a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Bally's revenue to grow 4.8% year on year to $627.3 million, slowing from the 9.2% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.33 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bally's has missed Wall Street's revenue estimates five times over the last two years.

Looking at Bally's peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 4.3%, meeting analysts' expectations, and Boyd Gaming reported flat revenue, in line with consensus estimates. Monarch traded down 3.9% following the results while Boyd Gaming was also down 15.4%.

Read our full analysis of Monarch's results here and Boyd Gaming's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 6.2% on average over the last month. Bally's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $12 (compared to the current share price of $13.9).

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