Gaming, betting and entertainment company Bally's Corporation (NYSE: BALY) will be reporting earnings this Monday after market close. Here’s what investors should know.
Bally's missed analysts’ revenue expectations last quarter, reporting revenues of $663.7 million, up 5.4% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income and EPS estimates.
Is Bally's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Bally’s revenue to grow 15.4% year on year, a reversal from the 5.1% decrease it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Bally’s peers in the consumer discretionary - casino operator segment, some have already reported their Q4 results, giving us a hint as to what we can expect. PENN Entertainment delivered year-on-year revenue growth of 8.2%, beating analysts’ expectations by 2.6%, and MGM Resorts reported revenues up 6%, topping estimates by 3.6%. PENN Entertainment traded up 24.7% following the results while MGM Resorts was also up 3.3%.
Read our full analysis of PENN Entertainment’s results here and MGM Resorts’s results here.
While some of the consumer discretionary - casino operator stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.4% on average over the last month. Bally's is down 9% during the same time and is heading into earnings with an average analyst price target of $16.25 (compared to the current share price of $12.66).
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