Core Insights - Bally's Corporation reported $629.97 million in revenue for Q3 2024, a year-over-year decline of 0.4% and a surprise of -3.17% compared to the Zacks Consensus Estimate of $650.63 million [1] - The company posted an EPS of -$1.99, significantly lower than the -$1.15 from the previous year, with an EPS surprise of -696.00% against the consensus estimate of -$0.25 [1] Revenue Performance - Revenue from Casinos & Resorts was $353.36 million, slightly below the average estimate of $355.35 million, reflecting a year-over-year decrease of -1.6% [3] - International Interactive revenue reached $230.94 million, missing the average estimate of $237.80 million, marking a year-over-year decline of -5.3% [3] - North America Interactive revenue was $45.68 million, slightly below the estimated $45.80 million, but showed a significant year-over-year increase of +54.5% [3] Adjusted EBITDAR Metrics - Adjusted EBITDAR for Other was reported at -$13.16 million, close to the estimate of -$13.20 million [3] - Adjusted EBITDAR for International Interactive was $90.03 million, exceeding the average estimate of $83.73 million [3] - Adjusted EBITDAR for North America Interactive was -$10.98 million, worse than the average estimate of -$7.03 million [3] - Adjusted EBITDAR for Casinos & Resorts was $100.44 million, below the average estimate of $115.27 million [3] Stock Performance - Bally's shares have returned +0.3% over the past month, compared to a +0.7% change in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Financial Data and Key Metrics Changes - Third quarter revenues decreased less than 1% year-over-year to $630 million, with Casinos & Resorts segment revenue declining by 2% and North America Interactive segment revenue increasing by 55% [6][22] - Adjusted EBITDA for the Casinos & Resorts segment was approximately $100 million, a 15% decrease from the previous year, with segment margins dropping to 28% from 33% [22] - International Interactive revenue declined by 5% to $231 million, but adjusted EBITDA increased by 5% year-over-year [23] Business Line Data and Key Metrics Changes - Casinos & Resorts segment revenue decreased by 2% to $353 million, impacted by headwinds in Rhode Island and Atlantic City [22] - North America Interactive generated revenue of $46 million, reflecting a 55% year-over-year improvement, although it reported an adjusted EBITDA loss of approximately $11 million [26] - UK Interactive business saw a 12% revenue growth, driven by customer acquisition and online sports betting operations [11][23] Market Data and Key Metrics Changes - The Chicago Temporary Casino's monthly revenues have stabilized, with quarterly admissions growing more than 6% and market share reaching its highest level [15] - Rhode Island faced revenue challenges due to bridge disruptions affecting traffic, impacting property level margins [17] - Atlantic City experienced a challenging quarter, but new management is expected to improve performance moving forward [18] Company Strategy and Development Direction - Bally's is focused on developing a flagship permanent casino in Downtown Chicago, with construction expected to start next year [8] - The company is pursuing a world-class integrated resort proposal in the Bronx, New York, as part of its growth strategy [10] - Bally's has separated its Asia operations to a licensing royalty model, allowing for more agility and focus on licensed markets [13][25] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the resiliency of their customer base, particularly in mid and upper segments, despite challenges in lower segments [20] - The company is optimistic about the future, especially with the anticipated merger with Casino Queen [21] - Management highlighted ongoing efforts to enhance profitability and operational efficiency across the portfolio [22][28] Other Important Information - Bally's ended the quarter with approximately 40.7 million shares outstanding and $191 million in cash, alongside $3.7 billion in long-term debt [27] - The company is actively working on initiatives to improve margins and enhance profitability [22] Q&A Session Summary - No questions were taken during the call due to the ongoing shareholder proxy process related to the Casino Queen merger [5]

Company Performance - Bally's Corporation reported a quarterly loss of $1.99 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.25, and compared to a loss of $1.15 per share a year ago, indicating a substantial earnings surprise of -696% [1] - The company posted revenues of $629.97 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.17%, and down from $632.48 million in the same quarter last year [2] - Over the last four quarters, Bally's has only surpassed consensus EPS estimates once, indicating ongoing challenges in meeting market expectations [2] Stock Outlook - Bally's shares have increased approximately 25.5% since the beginning of the year, outperforming the S&P 500's gain of 21.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.99 on revenues of $629.73 million, and for the current fiscal year, it is -$6.08 on revenues of $2.52 billion [7] - The estimate revisions trend for Bally's is currently unfavorable, resulting in a Zacks Rank 4 (Sell), suggesting that the shares are expected to underperform the market in the near future [6] Industry Context - The Hotels and Motels industry, to which Bally's belongs, is currently ranked in the bottom 12% of over 250 Zacks industries, indicating a challenging environment for companies in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Bally's reported a slight revenue decline to $630.0 million and a significant net loss of $247.9 million in Q3 2024, alongside strategic project funding and strong North America Interactive growth Q3 2024 Key Financial Results (vs. Q3 2023) | Metric | Q3 2024 (USD) | Q3 2023 (USD) | Change | | :--- | :--- | :--- | :--- | | **Consolidated Revenue** | **$630.0 million** | **$632.5 million** | **-0.4%** | | Casinos & Resorts Revenue | $353.4 million | $359.0 million | -1.6% | | International Interactive Revenue | $230.9 million | $243.9 million | -5.3% | | North America Interactive Revenue | $45.7 million | $29.6 million | +54.5% | | **Net Loss** | **($247.9 million)** | **($61.8 million)** | **-301.2%** | | **Adjusted EBITDAR** | **$166.3 million** | N/A | N/A | - Key strategic and operational milestones achieved during the quarter include securing **$940 million** in construction funding from GLPI for the Chicago project, beginning demolition at the Tribune site in Chicago, launching a second online sportsbook in the UK under the Bally's brand, and completing the demolition of the Tropicana hotel towers in Las Vegas subsequent to the quarter's end[2](index=2&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management discussed mixed financial results, emphasizing progress on major development projects in Chicago and Las Vegas, alongside ongoing initiatives to optimize portfolio performance and cost structure - CEO Robeson Reeves highlighted the critical **$940 million** financing for the Chicago casino and the demolition of the Tropicana in Las Vegas as key steps toward completing two attractive portfolio additions expected to drive shareholder returns[3](index=3&type=chunk) - President George Papanier emphasized that initiatives to optimize and centralize property-level functions in the Casinos & Resorts segment are showing positive outcomes, and the company remains optimistic about future benefits[6](index=6&type=chunk) - CFO Marcus Glover stated that the team is working to optimize the cost structure and enhance operational efficiency, particularly in the C&R and International Interactive segments, with tangible results expected in the near-term[6](index=6&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) Segment performance varied in Q3 2024, with North America Interactive showing substantial revenue growth, while Casinos & Resorts and International Interactive experienced declines, leading to divergent profitability trends Q3 2024 Revenue & Adjusted EBITDAR by Segment | Segment | Revenue (Q3 2024 USD) | YoY Change | Adjusted EBITDAR (Q3 2024 USD) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Casinos & Resorts | $353.4 million | -1.6% | $100.4 million | -15.0% | | International Interactive | $230.9 million | -5.3% | $90.0 million | +5.3% | | North America Interactive | $45.7 million | +54.5% | ($11.0 million) | +37.5% (Improved) | [Casinos & Resorts](index=2&type=section&id=Casinos%20%26%20Resorts) The Casinos & Resorts segment experienced a 1.6% revenue decrease to $353.4 million and a 15.0% Adjusted EBITDAR decline, primarily due to specific operational disruptions and lower hold - Segment results were adversely affected by ongoing bridge construction in Rhode Island disrupting traffic and visitation at the Lincoln property, turnover in the Atlantic City relationship marketing team impacting results during the key summer season, and lower-than-expected hold in Kansas City contributing to the decline[4](index=4&type=chunk) [International Interactive](index=2&type=section&id=International%20Interactive) International Interactive revenue declined 5.3% to $230.9 million due to Asian market weakness, despite strong UK growth, but Adjusted EBITDAR increased 5.3% to $90.0 million due to margin improvements - UK revenue grew a healthy **11.8%** (**8.9%** in constant currency), driven by all-time high active customer levels and robust Average Revenue per User[5](index=5&type=chunk) - Adjusted EBITDAR margin improvement was attributed to diligent UK marketing spend, management of compensation expenses, and synergies from technology platform consolidation[5](index=5&type=chunk) [North America Interactive](index=2&type=section&id=North%20America%20Interactive) North America Interactive revenue grew significantly by 54.5% to $45.7 million, narrowing its Adjusted EBITDAR loss to $11.0 million, driven by strong iGaming performance in Rhode Island and Pennsylvania - The segment's growth was primarily fueled by **iGaming** operations in Rhode Island and strong results in Pennsylvania[6](index=6&type=chunk) - The company remains pleased with the performance and positive player feedback for its **iGaming** product and Bally Bet OSB, indicating excitement for the segment's long-term potential[6](index=6&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The financial statements reveal a significant increase in net loss for Q3 and YTD 2024, stable long-term debt, a modest increase in cash, and lower capital expenditures compared to the prior year [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations show a net loss of $247.9 million in Q3 2024, significantly higher than the prior year, primarily due to a $150 million sale-leaseback loss and increased expenses Q3 2024 Statement of Operations Highlights (in thousands) | Line Item | Q3 2024 (USD thousands) | Q3 2023 (USD thousands) | | :--- | :--- | :--- | | Total Revenue | $629,974 | $632,477 | | Loss from Operations | ($157,655) | $37,236 | | Net Loss | ($247,855) | ($61,802) | | Diluted Loss Per Share | ($5.10) | ($1.15) | [Balance Sheet & Cash Flow Data](index=8&type=section&id=Balance%20Sheet%20%26%20Cash%20Flow%20Data) As of September 30, 2024, the balance sheet shows $191.0 million in cash, stable long-term debt at $3.67 billion, and capital expenditures of $155.8 million for the nine months, a decrease from prior year Selected Balance Sheet Data (in thousands) | Item | Sept 30, 2024 (USD thousands) | Dec 31, 2023 (USD thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $190,975 | $163,194 | | Long-term debt, including current portion | $3,670,938 | $3,662,635 | Selected Cash Flow Data (in thousands) | Item | Nine Months Ended Sept 30, 2024 (USD thousands) | Nine Months Ended Sept 30, 2023 (USD thousands) | | :--- | :--- | :--- | | Capital expenditures | $155,757 | $266,231 | [Reconciliation of GAAP to Non-GAAP Measures](index=2&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section reconciles GAAP Net Loss to non-GAAP Adjusted EBITDA and Adjusted EBITDAR, showing how the Q3 2024 net loss of $247.9 million was adjusted to an Adjusted EBITDA of $137.7 million - Management uses Adjusted EBITDA and Adjusted EBITDAR to provide a fuller understanding of core operating results and to evaluate period-to-period performance, as they believe these are widely used metrics in the gaming industry[10](index=10&type=chunk) Q3 2024 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Description | Amount (USD thousands) | | :--- | :--- | | **Net Loss** | **($247,855)** | | Interest expense, net | $73,975 | | (Benefit) for income taxes | ($33,629) | | Depreciation and amortization | $77,800 | | Loss on sale-leaseback, net | $150,000 | | Other Adjustments | $17,440 | | **Adjusted EBITDA** | **$137,731** |

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - A safer approach is to invest in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Bally's Corporation (BALY) Analysis - Bally's Corporation (BALY) has shown a price increase of 0.8% over the past four weeks, indicating growing investor interest [2] - Over the past 12 weeks, BALY's stock has gained 43.7%, demonstrating its ability to deliver positive returns over a longer timeframe [2] - BALY has a beta of 2.09, suggesting it moves 109% higher than the market in either direction, indicating fast-paced momentum [3] - The stock has a Momentum Score of B, suggesting it is a favorable time to invest [3] - BALY has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [3] - The stock is trading at a Price-to-Sales ratio of 0.28, indicating it is reasonably valued at 28 cents for each dollar of sales [3] Group 3: Investment Opportunities - In addition to BALY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [4] - The Zacks Research Wizard can assist in backtesting stock-picking strategies to ensure past profitability [4]

Group 1 - Bally's Corporation (BALY) is part of the Consumer Discretionary sector, which includes 279 stocks and has a Zacks Sector Rank of 11 [1] - Bally's Corporation currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook [1] - The Zacks Consensus Estimate for BALY's full-year earnings has increased by 31% in the past quarter, reflecting improved analyst sentiment [2] Group 2 - Bally's Corporation has gained approximately 23.3% year-to-date, while the average return for Consumer Discretionary stocks is a loss of 1.4%, showcasing its outperformance [2] - Bally's Corporation belongs to the Hotels and Motels industry, which has an average gain of 6.1% this year, indicating better performance compared to its industry peers [3] - Paramount Global (PARAA), another Consumer Discretionary stock, has returned 11.9% year-to-date, with a consensus EPS estimate increase of 52.8% over the past three months [2][3]

Group 1 - Bally's Corporation (BALY) is currently outperforming its Consumer Discretionary peers with a year-to-date gain of approximately 22.4%, while the sector has seen an average loss of about 0.9% [2][3] - The Zacks Rank for Bally's Corporation is 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 31% over the past three months [2][3] - Bally's Corporation belongs to the Hotels and Motels industry, which is ranked 147 in the Zacks Industry Rank, and this industry has gained an average of 3.5% so far this year [3] Group 2 - Paramount Global (PARAA) is another Consumer Discretionary stock that has outperformed the sector, with a year-to-date increase of 16.1% [2] - The consensus EPS estimate for Paramount Global has risen by 52.8% over the past three months, and it holds a Zacks Rank of 1 (Strong Buy) [3] - The Media Conglomerates industry, which includes Paramount Global, is ranked 22 and has experienced a decline of 2.2% since the beginning of the year [3]

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead ...

Andrii Dodonov Introduction As an analyst here on Seeking Alpha, my goal is to always maintain transparency with readers. No matter how much I like a company or even if I own them, I will always be transparent in my articles. If a stock is a riskier investment, I will share that. If one of my favorite holdings' fundamentals start to change for the worse, I will share that as well. I say that to say, in this article I give you two stocks that pay higher, attractive yields (above 5% is higher in my opinion), ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-38850 Bally's Corporation (Exact name of registrant as specified in its charter) Delaware 20-0904604 (State or other jurisdiction of incorporation or organization ...