RENO, Nev., Oct. 08, 2025 (GLOBE NEWSWIRE) -- Monarch Casino & Resort, Inc. (NASDAQ: MCRI) announced today that it will release its 2025 third quarter financial results after the market closes on Tuesday, October 21, 2025. About Monarch Casino & Resort, Inc.Monarch Casino & Resort, Inc., through its subsidiaries, owns and operates the Monarch Casino Resort Spa ("Monarch Black Hawk") in Black Hawk, Colorado, approximately 40 miles west of Denver and the Atlantis Casino Resort Spa ("Atlantis"), a hotel/casino ...

Core Insights - Spa Monarch has been ranked the 2 Best Hotel Spa in the United States for two consecutive years by USA Today's 10Best Readers' Choice Travel Awards, highlighting its status as a premier wellness destination [1][2] - The spa has received recognition for three consecutive years, previously ranking 4th in 2023, showcasing its consistent excellence in luxury and guest satisfaction [2] Company Overview - Monarch Casino Resort Spa is located in Black Hawk, Colorado, and offers upscale accommodations, fine dining, an expansive casino, and the nationally recognized Spa Monarch [5] - The resort aims to deliver unforgettable guest experiences by blending luxury, relaxation, and entertainment in the Rocky Mountains [5] Unique Offerings - Spa Monarch features a variety of award-winning amenities, including a rooftop pool, fire pits, aqua spa, mountain stone bath, and innovative therapies such as brine inhalation and light spectrum treatments [3][4] - The spa also includes herbal steam rooms and an experiential shower with sensory effects, enhancing the overall guest experience [3]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents Monarch Casino & Resort's unaudited consolidated financial statements for Q2 and YTD 2025 and 2024, including income, balance, equity, and cash flow statements with notes [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2025 net revenues rose to **$136.9 million** and net income to **$27.0 million**; YTD net revenues reached **$262.3 million** and net income **$46.9 million** Consolidated Statements of Income Highlights (In thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Revenues** | $136,914 | $128,143 | $262,308 | $249,800 | | **Income from Operations** | $34,899 | $29,513 | $60,217 | $53,323 | | **Net Income** | $27,008 | $22,682 | $46,872 | $40,957 | | **Diluted EPS** | $1.44 | $1.19 | $2.50 | $2.12 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$705.8 million** by June 30, 2025, while total liabilities decreased, raising stockholders' equity to **$539.2 million** Consolidated Balance Sheet Highlights (In thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $102,537 | $90,422 | | **Property and Equipment, net** | $576,025 | $575,287 | | **Total Assets** | $705,786 | $691,583 | | **Total Current Liabilities** | $139,520 | $146,463 | | **Total Liabilities** | $166,539 | $173,835 | | **Total Stockholders' Equity** | $539,247 | $517,748 | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity grew to **$539.2 million** by June 30, 2025, driven by **$46.9 million** net income, offset by **$11.0 million** dividends and **$20.0 million** stock repurchases - Key changes in stockholders' equity for the six months ended June 30, 2025 include: net income of $19.9M in Q1 and $27.0M in Q2, dividend payments totaling $11.0M, and common stock repurchases of $20.0M[12](index=12&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was **$70.6 million** for YTD 2

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

Core Insights - Monarch Casino & Resort (NASDAQ: MCRI) saw a stock surge of 20% on July 17, 2025, reaching a new 52-week peak, significantly outperforming the S&P 500 [2] - The company reported record Q2 2025 adjusted EBITDA of $51.3 million, a 16.8% year-over-year increase, exceeding consensus estimates by $12.8 million [3] - Despite the stock rally, Monarch remains reasonably valued compared to the S&P 500, with a price-to-sales ratio of 3.0 and a price-to-earnings ratio of 25.6 [4] Financial Performance - Casino revenue grew by 12.1% due to strong demand and efficiency improvements from a $100 million renovation at Atlantis, while hotel revenue decreased by 3.1% [3] - Q2 net income increased by 19.1% to $27 million, with earnings per share (EPS) growing by 21% to $1.44 [3] - The company returned capital to shareholders through a $0.30 dividend and $19.8 million in stock buybacks [3] Valuation Metrics - Monarch's three-year revenue compound annual growth rate (CAGR) is 7.1%, surpassing the S&P 500's 5.5% [4] - The company has an operating margin of 17.9% and a net income margin of 14.1%, indicating strong profitability [4] - Monarch's debt-to-equity ratio is only 0.9%, significantly lower than the S&P 500 average of 19.4% [5] Market Sensitivity - Monarch stock has shown significant volatility during economic downturns, with notable declines of 41.8% during the 2022 inflation shock and 75.1% during the 2020 COVID crash [6][7] - Despite historical volatility, the company's fundamentals support a long-term investment outlook [7]

Core Viewpoint - Monarch Casino (NASDAQ:MCRI) is identified as an undervalued investment opportunity, with analysts highlighting its potential for significant returns over the past year [2]. Company Summary - The investment thesis for Monarch Casino has been supported by multiple analysts, indicating a consensus on its undervaluation [2]. - The positive performance of Monarch Casino is noted, suggesting that the investment strategy is yielding favorable results [2]. Industry Summary - The broader context of the gaming and casino industry is implied, with a focus on identifying undervalued assets within this sector [2].

Company Performance - Monarch Casino (MCRI) shares have increased by 24.5% over the past month and reached a new 52-week high of $113.88 [1] - The stock has gained 32.9% since the beginning of the year, outperforming the Zacks Consumer Discretionary sector's 11.9% and the Zacks Gaming industry's 18.9% [1] Earnings and Revenue - Monarch Casino has consistently exceeded earnings expectations, reporting an EPS of $1.44 against a consensus estimate of $1.22 in its last earnings report [2] - For the current fiscal year, the company is projected to achieve earnings of $5.27 per share on revenues of $537.3 million, reflecting a 6.25% increase in EPS and a 2.89% increase in revenues [3] - The next fiscal year is expected to see earnings of $5.47 per share on revenues of $549.6 million, indicating a year-over-year change of 3.73% in EPS and 2.29% in revenues [3] Valuation Metrics - The stock trades at 19.9 times the current fiscal year EPS estimates, below the peer industry average of 23.9 times [7] - On a trailing cash flow basis, the stock trades at 13.3 times compared to the peer group's average of 11.2 times [7] Zacks Rank and Style Scores - Monarch Casino holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions [8] - The company has a Value Score of B, and both Growth and Momentum Scores are A, resulting in a combined VGM Score of A [6][9] Industry Comparison - Accel Entertainment, Inc. (ACEL) is a notable peer with a Zacks Rank of 2 (Buy) and strong style scores [10] - ACEL is expected to post earnings of $0.86 per share on revenues of $1.33 billion for the current fiscal year, having beaten consensus estimates by 33.33% last quarter [11] - The Gaming industry is positioned in the top 38% of all industries, suggesting favorable conditions for both MCRI and ACEL [12]

Core Viewpoint - Monarch Casino (MCRI) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, making it a valuable tool for investors [2][3]. - The correlation between earnings estimate revisions and stock price movements is strong, largely due to institutional investors who adjust their valuations based on these estimates [3]. Business Improvement Indicators - The upgrade in Zacks Rank for Monarch Casino reflects an improvement in the company's underlying business, which is expected to drive the stock price higher as investors recognize this trend [4]. - Analysts have raised their earnings estimates for Monarch Casino, with the Zacks Consensus Estimate for the fiscal year ending December 2025 projected at $5.15 per share, showing a 0.4% increase over the past three months [7]. Zacks Rank System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [8][9].

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1] Group 1: Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1] Group 2: Market Focus - The investment strategy encompasses markets in the US, Canada, and Europe, indicating a broad geographical focus for potential investment opportunities [1]

Financial Performance - Monarch Casino reported revenue of $136.91 million for the quarter ended June 2025, reflecting a year-over-year increase of 6.9% [1] - Earnings per share (EPS) for the quarter was $1.44, up from $1.19 in the same quarter last year, indicating a significant improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $130.37 million by 5.02%, while the EPS surpassed the consensus estimate of $1.22 by 18.03% [1] Revenue Breakdown - Other revenues amounted to $6.02 million, exceeding the average estimate of $5.37 million by analysts, with a year-over-year increase of 7.7% [4] - Hotel revenues were reported at $19.11 million, slightly above the average estimate of $18.4 million, but showed a decline of 3.2% year-over-year [4] - Food and beverage revenues reached $32.19 million, in line with the average estimate of $32.2 million, representing a modest increase of 1.1% compared to the previous year [4] - Casino revenues were reported at $79.59 million, significantly higher than the estimated $74.47 million, marking a robust year-over-year increase of 12.1% [4] Stock Performance - Over the past month, shares of Monarch Casino have returned +2.7%, while the Zacks S&P 500 composite has increased by +4.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]