Earnings results often indicate what direction a company will take in the months ahead. With Q4 now behind us, let’s have a look at PENN Entertainment (NASDAQ:PENN) and its peers.

Casino operators enjoy limited competition because gambling is a highly regulated industry. These companies can also enjoy healthy margins and profits. Have you ever heard the phrase ‘the house always wins’? Regulation cuts both ways, however, and casinos may face stroke-of-the-pen risk that suddenly limits what they can or can't do and where they can do it. Furthermore, digitization is changing the game, pun intended. Whether it’s online poker or sports betting on your smartphone, innovation is forcing these players to adapt to changing consumer preferences, such as being able to wager anywhere on demand.

The 9 casino operator stocks we track reported a slower Q4; on average, revenues beat analyst consensus estimates by 1.5%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the casino operator stocks have fared somewhat better than others, they collectively declined, with share prices falling 0.5% on average since the previous earnings results.

Weakest Q4: PENN Entertainment (NASDAQ:PENN)

Established in 1982, PENN Entertainment (NASDAQ:PENN) is a diversified American operator of casinos, sports betting, and entertainment venues.

PENN Entertainment reported revenues of $1.40 billion, down 12% year on year, falling short of analyst expectations by 9%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.

Jay Snowden, Chief Executive Officer and President, said: “PENN delivered another quarter of solid property level performance while continuing to invest in our high growth digital business, which we believe will create significant long term shareholder value. Our retail results reflect strong customer demand and well-executed strategies across our portfolio. In our Interactive segment, ESPN BET attracted significantly more first-time depositors (FTDs) than we anticipated, which drove higher than expected promotional expense. Our successful launch led to substantial expansion in key performance indicators (KPIs) including monthly active users (MAUs), handle, and cash handle. Importantly, strong early retention and consistent user acquisition have led to steady month-over-month increases in cash handle as our promotional expense has started to normalize entering 2024. ESPN BET has also attracted the mass market sports fan, highlighting the potential to expand the appeal of sports betting and grow the overall market. This foundation sets the stage for continued growth and market share gains as we introduce further product enhancements and deeper integrations into the ESPN media ecosystem.

PENN Entertainment delivered the weakest performance against analyst estimates of the whole group. The stock is down 25.1% since the results and currently trades at $16.85.

Read our full report on PENN Entertainment here, it's free.

Best Q4: Wynn Resorts (NASDAQ:WYNN)

Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ:WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.

Wynn Resorts reported revenues of $1.84 billion, up 83.1% year on year, outperforming analyst expectations by 5.9%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

Wynn Resorts achieved the fastest revenue growth among its peers. The stock is up 1.3% since the results and currently trades at $101.1.

Is now the time to buy Wynn Resorts? Access our full analysis of the earnings results here, it's free.

Bally's (NYSE:BALY)

Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE:BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms.

Bally's reported revenues of $611.7 million, up 6.1% year on year, falling short of analyst expectations by 1.8%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

The stock is up 29% since the results and currently trades at $13.29.

Read our full analysis of Bally's's results here.

Caesars Entertainment (NASDAQ:CZR)

Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ:CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties.

Caesars Entertainment reported revenues of $2.83 billion, flat year on year, falling short of analyst expectations by 1.3%. It was a weak quarter for the company, with a miss of analysts' earnings estimates .

The stock is down 3.5% since the results and currently trades at $40.2.

Read our full, actionable report on Caesars Entertainment here, it's free.

MGM Resorts (NYSE:MGM)

Operating several properties on the Las Vegas Strip, MGM Resorts (NYSE:MGM) is a global hospitality and entertainment company known for its resorts and casinos.

MGM Resorts reported revenues of $4.38 billion, up 21.8% year on year, surpassing analyst expectations by 5.8%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and a solid beat of analysts' revenue estimates.

The stock is down 6.3% since the results and currently trades at $42.78.

Read our full, actionable report on MGM Resorts here, it's free.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.