Core Viewpoint - Monarch Casino (MCRI) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on the changing earnings picture of a company, with the Zacks Consensus Estimate reflecting EPS estimates from sell-side analysts [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [4]. Business Outlook and Investor Sentiment - The rising earnings estimates and the Zacks rating upgrade suggest an improvement in Monarch Casino's underlying business, which is expected to lead to increased stock prices as investors respond positively [5][10]. - Analysts have raised their earnings estimates for Monarch Casino, with the Zacks Consensus Estimate increasing by 3.1% over the past three months, projecting earnings of $6.00 per share for the fiscal year ending December 2026, indicating no year-over-year change [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of Monarch Casino to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Insights - Monarch Casino & Resort, Inc. (MCRI) reported its results, marking the second consecutive quarter without achieving double-beats, which is a deviation from its usual performance [1] Company Analysis - Monarch Casino & Resort, Inc. is highlighted as a top pick in the casino sector, indicating a strong interest in its performance despite recent results [1] Industry Context - The analysis is part of a broader focus on the casino and gaming industry, which is experiencing scrutiny as companies report their financial results [1]

Core Insights - Monarch Casino reported revenue of $140 million for the quarter ended December 2025, reflecting a 4.1% increase year-over-year and surpassing the Zacks Consensus Estimate of $138.75 million by 0.9% [1] - The company's EPS was $1.25, down from $1.36 in the same quarter last year, resulting in an EPS surprise of -8.43% against the consensus estimate of $1.37 [1] Revenue Breakdown - Other Revenues: $6.79 million, exceeding the average estimate of $6.3 million by two analysts, representing a year-over-year increase of 2.4% [4] - Hotel Revenues: $17.86 million, below the average estimate of $18.6 million, showing a decline of 1.9% year-over-year [4] - Food and Beverage Revenues: $34.15 million, slightly below the average estimate of $34.3 million, but up 4.8% compared to the previous year [4] - Casino Revenues: $81.21 million, surpassing the average estimate of $79.5 million, with a year-over-year increase of 5.3% [4] Stock Performance - Over the past month, shares of Monarch Casino have returned -0.2%, while the Zacks S&P 500 composite has increased by 0.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

分组1 - Monarch Casino reported quarterly earnings of $1.25 per share, missing the Zacks Consensus Estimate of $1.37 per share, and down from $1.36 per share a year ago, representing an earnings surprise of -8.43% [1] - The company posted revenues of $140 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.90%, and up from $134.51 million year-over-year [2] - Over the last four quarters, Monarch Casino has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has lost about 2% since the beginning of the year, while the S&P 500 has gained 1.1% [3] - The current consensus EPS estimate for the coming quarter is $1.13 on revenues of $129.2 million, and for the current fiscal year, it is $5.77 on revenues of $558.2 million [7] - The Zacks Industry Rank indicates that the Gaming industry is currently in the bottom 22% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Performance - In Q4 2025, Monarch Casino & Resort reported net revenue of $140.0 million, a 4.1% increase from $134.5 million in Q4 2024[1] - Net income for Q4 2025 reached $22.9 million, reflecting a significant increase of 444.9% compared to $4.2 million in Q4 2024[1] - Adjusted EBITDA for Q4 2025 was $51.8 million, up 9.6% from $47.3 million in the same quarter last year[1] - For the full year 2025, net revenue totaled $545.1 million, a 4.4% increase from $522.2 million in 2024[1] - Full year net income was $101.4 million, a 39.3% increase from $72.8 million in 2024[1] Earnings and Margins - The adjusted EBITDA margin improved to 37.0% in Q4 2025, an increase of approximately 185 basis points from 35.1% in Q4 2024[3] - Basic earnings per share rose to $1.27 in Q4 2025 compared to $0.23 in Q4 2024, reflecting a growth of 452%[23] Expenses and Assets - Total operating expenses decreased to $110,898,000 in Q4 2025 from $130,610,000 in Q4 2024, a reduction of approximately 15%[23] - Total current assets increased to $129,253,000 in 2025 from $90,422,000 in 2024, marking a growth of 43%[25] - Cash and cash equivalents significantly improved to $96,468,000 in 2025, up from $58,760,000 in 2024, an increase of 64%[25] - Total assets grew to $712,849,000 in 2025, compared to $691,583,000 in 2024, reflecting a growth of 3.2%[26] - Stockholders' equity increased to $537,670,000 in 2025 from $517,748,000 in 2024, a rise of 3.9%[26] Shareholder Returns and Capital Management - The company declared a cash dividend of $0.30 per share, payable on March 16, 2026[1] - Capital expenditures in Q4 2025 were $3.4 million, primarily for ongoing maintenance at the properties[10] - The company repurchased 445,715 shares of common stock for $41.0 million in Q4 2025, totaling 797,279 shares for $72.2 million for the full year[6][12] Strategic Initiatives - Monarch continues to evaluate potential M&A opportunities to drive long-term value for shareholders[13] Tax and Interest Income - The company reported a provision for income taxes of $(6,815,000) in Q4 2025, compared to a benefit of $63,000 in Q4 2024[27] - Interest income net improved to $654,000 in Q4 2025 from $245,000 in Q4 2024, showing a growth of 167%[27]

Core Viewpoint - Monarch Casino & Resort, Inc. reported record operating results for Q4 and the full year 2025, with significant increases in net income and adjusted EBITDA, reflecting strong operational performance and market share growth [1][3][4]. Financial Performance - For Q4 2025, net revenue reached $140.0 million, a 4.1% increase from $134.5 million in Q4 2024. For the full year, net revenue was $545.1 million, up 4.4% from $522.2 million in 2024 [1][6]. - Net income for Q4 2025 was $22.9 million, a 444.9% increase from $4.2 million in Q4 2024. For the full year, net income was $101.4 million, a 39.3% increase from $72.8 million in 2024 [1][8]. - Adjusted EBITDA for Q4 2025 was $51.8 million, a 9.6% increase from $47.3 million in Q4 2024. For the full year, adjusted EBITDA was $199.1 million, a 10.4% increase from $180.4 million in 2024 [1][9]. Operational Efficiency - The adjusted EBITDA margin for Q4 2025 increased to 37.0%, up approximately 185 basis points from 35.1% in Q4 2024. The full year adjusted EBITDA margin also improved to 36.5%, an increase of approximately 197 basis points from 34.5% in 2024 [3][4]. - Selling, general and administrative (SG&A) expenses for Q4 2025 were $27.9 million, slightly up from $27.8 million in Q4 2024, but as a percentage of net revenue, SG&A decreased to 19.9% from 20.7% [7]. Market Position and Strategy - The company increased market share year-over-year at both Atlantis and Monarch Black Hawk, indicating successful capital investments and enhancements at both properties [4]. - Monarch continues to explore opportunities to increase revenue while deploying technology to reduce operating costs [4]. Shareholder Returns - In Q4 2025, the company repurchased 445,715 shares of common stock for $41.0 million, and for the full year, it repurchased 797,279 shares for $72.2 million [5][12]. - A cash dividend of $0.30 per share was declared, payable on March 16, 2026, as part of an annual cash dividend of $1.20 per share [11][14]. Liquidity and Capital Expenditures - As of December 31, 2025, the company had cash and cash equivalents of $96.5 million and no borrowings under its credit facility, indicating strong liquidity [10]. - Capital expenditures in Q4 2025 were $3.4 million, primarily for ongoing maintenance at the company's properties [10].

Core Viewpoint - Monarch Casino & Resort, Inc. is set to release its fourth quarter financial results for 2025 on February 4, 2026, after market close [1] Company Overview - Monarch Casino & Resort, Inc. operates two main properties: Monarch Casino Resort Spa in Black Hawk, Colorado, and Atlantis Casino Resort Spa in Reno, Nevada [2] - Monarch Black Hawk features 516 guest rooms, approximately 60,000 square feet of casino space, 1,000 slot machines, 43 table games, and various dining and entertainment options [3] - Atlantis Casino Resort Spa includes 817 guest rooms, around 61,000 square feet of casino space, 1,200 slot and video poker machines, and a range of food outlets and recreational facilities [4]

Core Thesis - Monarch Casino & Resort, Inc. (MCRI) is positioned favorably in the market with a share price of $91.99 as of January 13th, supported by a trailing P/E of 21.05 and a forward P/E of 15.41, indicating potential for growth and investment appeal [1][2]. Business Model - MCRI operates two destination properties: Atlantis Casino Resort Spa in Reno and Monarch Casino Resort Spa in Black Hawk, focusing on a "play, stay, and service" model that integrates full-service casinos, upscale hotels, and diverse dining options to enhance guest experiences [2][4]. - Revenue generation is diversified, stemming from both gaming activities (slots, tables, sports wagering) and non-gaming services (rooms, food and beverage, spa services, events), ensuring a steady cash flow [2]. Customer Engagement and Growth Strategy - The company employs a data-rich loyalty program to deepen guest engagement, while yield management optimizes pricing during varying demand periods, contributing to organic growth [3]. - Continuous reinvestment in slot products, hotel upgrades, and dining enhancements strengthens MCRI's competitive edge and supports consistent profitability [3][5]. Operational Excellence - MCRI's operational discipline, including effective labor management and strategic floor layout, ensures a resilient business model that delivers consistent cash flow and community benefits [5]. - The dual-location strategy balances the appeal of a destination resort in Reno with a high-frequency property in Black Hawk, attracting a diverse clientele [4]. Leadership and Market Position - Under experienced leadership, MCRI has successfully upgraded assets and executed expansions, fostering strong local and visitor engagement [5]. - The company's focus on quality service and integrated amenities positions it well within the competitive landscape, appealing to leisure travelers, couples, and small conventions [4].

Core Viewpoint - The article highlights the performance of a regional casino operator, suggesting it remains one of the best plays among smaller operators in the industry [1]. Group 1: Company Overview - The company is recognized for its strong positioning within the regional casino market, indicating a competitive advantage over peers [1]. Group 2: Analyst Background - The analyst has extensive experience in equity analysis, focusing on the U.S. restaurant industry and related sectors, including casinos and gaming [2]. - The research firm specializes in uncovering hidden value in micro and small-cap stocks, which are often overlooked by mainstream analysts [2].

Core Insights - Monarch Rewards has been recognized as the 3 Best Player's Club in Newsweek's 2026 Readers' Choice Awards, highlighting its successful guest-first rewards model across its properties in Black Hawk, CO, and Reno, NV [1] Group 1: Monarch Rewards Program - The Monarch Rewards program allows members to earn and combine Tier and Comp points across both properties on a single account, with benefits redeemable resort-wide [2] - The program features five public tiers and an invite-only level, enabling members to unlock elevated perks as they engage with the casino [2] Group 2: Guest Experience and Offerings - Monarch Rewards aims to enhance the guest experience by providing simple and valuable rewards that can be redeemed for award-winning dining, luxury hotel stays, spa treatments, and luxury shopping [3] - Specific benefits include access to dining options such as Monarch Chophouse, Bistro Mariposa, and Spa Monarch treatments, designed to make every visit more rewarding [3] Group 3: Company Overview - Monarch Casino & Resort, Inc. operates the four-diamond Atlantis Casino Resort Spa in Reno, NV, and the Monarch Casino Black Hawk in Black Hawk, CO, which is approximately 40 miles west of Denver [5]