Core Insights - Golden Entertainment reported a quarterly loss of $0.18 per share, missing the Zacks Consensus Estimate of a loss of $0.08, and compared to earnings of $0.18 per share a year ago, indicating an earnings surprise of -125.00% [1] - The company posted revenues of $154.82 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.98% and down from $161.23 million year-over-year [2] - Golden Entertainment shares have declined approximately 32.8% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $167.48 million, and for the current fiscal year, it is $0.31 on revenues of $648.32 million [7] - The estimate revisions trend for Golden Entertainment was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Gaming industry, to which Golden Entertainment belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - GameSquare Holdings, Inc., another company in the same industry, is expected to report a quarterly loss of $0.03 per share, reflecting a year-over-year change of +78.6% [9]

Financial Data and Key Metrics Changes - The company reported revenues exceeding $1 billion for the third quarter, with EBITDA at $322 million, maintaining a margin of 37% [4][17] - The total leverage ratio improved from 2.8 times to 1.5 times following the sale of a stake in FanDuel, with lease-adjusted leverage declining from 3.2 times to 2.0 times [23][22] Business Line Data and Key Metrics Changes - The Las Vegas Locals segment generated revenues of $211 million and EBITDA of $92 million, with year-over-year growth of 2% in both metrics when excluding the Orleans [5][6] - The Midwest and South segment achieved its strongest third-quarter performance in three years, with revenues rising 3% to $539 million and EBITDA growing to $202 million, exceeding 2% over the prior year [9][10] Market Data and Key Metrics Changes - The broader Las Vegas Locals market saw gaming revenue growth of over 3% in the last 12 months, supported by solid wage growth of more than 6% in Southern Nevada [7][8] - The company noted improvements in play from both core and retail customers, indicating a positive trend in customer demand across the country [12][18] Company Strategy and Development Direction - The company is focused on capital investments to enhance property offerings, with a budget of $100 million per year for growth capital projects [14][21] - Significant developments include the $750 million resort in Norfolk, Virginia, scheduled to open in November 2027, and the Cadence Crossing project in Las Vegas, set to replace the Joker's Wild Casino [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the Southern Nevada economy and the ongoing growth potential of the Las Vegas Locals business [9][18] - The company anticipates continued strong performance in the fourth quarter, supported by improving customer trends and ongoing capital investments [12][24] Other Important Information - The company repurchased $160 million in stock during the quarter and paid $15 million in dividends, returning a total of $637 million to shareholders year-to-date [17][22] - The company is maintaining a disciplined approach to marketing spend, despite increased competition in some markets [56] Q&A Session Summary Question: What are the main drivers of weakness in the destination business? - Management noted that the weakness is primarily in the destination business, particularly at the Orleans, while core and locals customers continue to perform well [26][28] Question: Can you share thoughts on the M&A pipeline? - Management indicated a disciplined approach to M&A, monitoring opportunities but not seeing a significant increase in pitch books [31] Question: How did the Midwest and South properties perform? - Performance was generally broad-based, with notable growth at Treasure Chest, indicating strong results across the portfolio [36] Question: What is the expected impact of the tax bill? - Management believes the tax bill will provide incremental benefits but has not quantified its impact on revenue and EBITDA [66] Question: How is the company managing disruption from renovations? - Management stated that while there is disruption, performance at properties like Suncoast remains in line with prior year results, and they are managing through the construction effectively [60][62] Question: What is the outlook for the balance sheet and leverage? - Management plans to maintain leverage around 1.5 to 2 times, gradually increasing as capital plans are executed, while remaining prudent about future opportunities [90][92]

Financial Data and Key Metrics Changes - The company reported revenues exceeding $1,000,000,000 for the third quarter, with EBITDAR at $322,000,000, maintaining a margin of 37% consistent with the prior year [4][17] - The total leverage ratio improved from 2.8 times to 1.5 times following the sale of a stake in FanDuel, with lease adjusted leverage declining from 3.2 times to 2.0 times [24][100] Business Line Data and Key Metrics Changes - The Las Vegas Local segment generated revenues of $211,000,000 and EBITDAR of $92,000,000, with year-over-year growth of 2% in both revenues and EBITDAR when excluding the Orleans [5][6] - The Midwest and South segment achieved a 3% revenue increase to $539,000,000, with EBITDAR growing by over 2% [9][10] - The online segment is projected to achieve $60,000,000 in EBITDAR for the year, with expectations of approximately $30,000,000 for 2026 [10] Market Data and Key Metrics Changes - The broader Las Vegas locals market saw gaming revenue growth of over 3% year-over-year, supported by solid wage growth exceeding 6% [6][7] - The Downtown Las Vegas segment's revenues and EBITDA remained stable, driven by strong play from Hawaiian customers despite lower hotel revenues [9] Company Strategy and Development Direction - The company is focused on capital investments to enhance guest experiences, with a budget of $100,000,000 annually for growth capital projects [13][21] - Ongoing renovations at properties like Suncoast and Orleans are aimed at maintaining competitiveness in the market [12][46] - The company is pursuing significant growth opportunities, including a $750,000,000 resort development in Norfolk, Virginia, scheduled to open in November 2027 [16] Management's Comments on Operating Environment and Future Outlook - Management noted continued strength in play from core customers and improving trends from retail customers, indicating a positive outlook for the fourth quarter [12][25] - The Southern Nevada economy is described as resilient and diversified, positioning the company well for future growth [8] Other Important Information - The company repurchased $160,000,000 in stock during the quarter and paid $15,000,000 in dividends, returning a total of $637,000,000 to shareholders year-to-date [17][22] - The company is maintaining a disciplined approach to capital allocation, with plans for ongoing share repurchases and dividends [23] Q&A Session Summary Question: What are the main drivers of weakness in the destination business? - Management indicated that the weakness is primarily in the destination business, while core and local customers continue to perform well, with improvements in forward bookings noted [27][28] Question: Thoughts on the M&A pipeline? - The company is monitoring M&A opportunities but remains disciplined in its approach, focusing on the right assets at the right price [34][35] Question: Trends in the Midwest and South properties? - Results were broadly strong across the Midwest and South, with Treasure Chest noted for its continued growth [39][41] Question: How are the Vegas locals assets positioned from a CapEx perspective? - The company is confident in its Vegas locals assets, with ongoing renovations at Suncoast and plans for updates at Orleans to remain competitive [43][46] Question: Expectations for the impact of the tax bill? - Management expects incremental benefits from the tax bill but has not quantified the overall impact on revenue and EBITDAR [72][73] Question: How did the quarter play out month to month? - The quarter was steady, with some fluctuations due to holiday timing, but core trends remained consistent [77] Question: Any impact from the cybersecurity incident? - The cybersecurity incident did not impact business operations, and the company has cyber insurance to mitigate risks [90] Question: How is the balance sheet being optimized? - The company is maintaining a leverage target of around 2.5 times, with current leverage at 1.5 times, and is open to adjusting based on future opportunities [99][100]

Financial Data and Key Metrics Changes - The company reported revenues exceeding $1 billion for the third quarter, with EBITDA at $322 million, maintaining a margin of 37% consistent with the prior year [3][16] - The total leverage ratio improved from 2.8 times to 1.5 times following the sale of a 5% stake in FanDuel, while lease-adjusted leverage decreased from 3.2 times to 2.0 times [22][21] Business Line Data and Key Metrics Changes - The Las Vegas Locals segment generated revenues of $211 million and EBITDA of $92 million, with year-over-year growth of 2% in both metrics when excluding the Orleans property [4][8] - The Midwest and South segment achieved its strongest third-quarter performance in three years, with revenues rising 3% to $539 million and EBITDA growing to $202 million, reflecting broad-based growth across the segment [8][9] Market Data and Key Metrics Changes - The broader Las Vegas Locals market saw gaming revenue growth of over 3% in the last 12 months, supported by solid wage growth exceeding 6% in Southern Nevada [5][6] - The Downtown Las Vegas segment's revenues and EBITDA remained stable compared to the prior year, driven by strong play from Hawaiian customers despite softness in destination business [8][9] Company Strategy and Development Direction - The company is focused on capital investments to enhance guest experiences, with a budget of $100 million annually for growth capital projects, including expansions at Sky River Casino and Cadence Crossing [10][19] - The company plans to maintain a balanced approach to capital allocation, with intentions to repurchase approximately $150 million in stock quarterly while paying dividends [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the Las Vegas Locals business, citing ongoing improvements in customer demand and operational efficiencies [3][11] - The company noted that customer trends observed in the third quarter have continued into October, indicating a positive outlook for the fourth quarter [11][23] Other Important Information - The company completed $146 million in capital expenditures during the third quarter, bringing year-to-date expenditures to $440 million, with expectations to reach approximately $600 million for the year [18][19] - The company is undergoing renovations at several properties, including the IP Hotel and Orleans Hotel, to enhance competitiveness [12][19] Q&A Session Summary Question: What are the main drivers of weakness in the destination business? - Management indicated that the weakness is primarily related to the Orleans property, while core and retail customer segments continue to perform well [25][26] Question: Can you provide insights on the M&A pipeline? - Management stated they are monitoring opportunities but have not seen a significant increase in M&A activity recently [28] Question: How did the Midwest and South properties perform? - The performance was broadly strong across the portfolio, with notable growth at Treasure Chest Casino [31][32] Question: What is the expected impact of the Orleans Hotel project? - Management anticipates limited disruption from the renovation project, with more clarity expected as the project scope is defined [45][49] Question: How is the promotional environment across markets? - The company has maintained a disciplined marketing approach despite increased competition, resulting in consistent margins [50] Question: What are the expectations for the tax bill benefits? - Management noted that while there are several elements to the tax bill, they have not quantified the overall benefit to revenue and EBITDA [57] Question: How is the balance sheet positioned regarding leverage? - The company is currently at a leverage ratio of 1.5 times, with plans to gradually increase it to around 2.5 times as capital projects progress [80][81]

Core Insights - Las Vegas is experiencing a significant decline in international tourism, particularly from Canada, which is its largest international market [1][4] - Mayor Shelley Berkley has made a public appeal to Canadian visitors, emphasizing the need for their return to support the local economy [2][14] - The downturn in tourism is attributed to various factors, including economic conditions, rising costs, and political concerns [7][9] Tourism Decline - The city saw a drop of 11% in total tourists in June 2025 compared to June 2024, with international visitors down by 13% [3] - Canadian tourist numbers fell sharply, with Air Canada and WestJet reporting declines of 33% and 31% respectively, and Flair Airlines experiencing a 62% drop [4] - Canadian tourists contributed approximately $3.6 billion to the Southern Nevada economy in 2024, supporting over 43,000 jobs [5] Economic Impact - The tourism industry in Southern Nevada generates a total economic impact of $85.2 billion [12] - The decline in visitors has led to a 27,000 room-night decrease in the second quarter, significantly affecting major gaming companies [10] - Las Vegas visitor volumes have consistently declined each month in 2025, with a 7.3% decrease in the first half compared to 2024 [12] Affordability Concerns - Mayor Berkley highlighted that Las Vegas has strayed from its historical value proposition, with rising costs alienating potential visitors [6][8] - Resort fees now range from $44 to $57 per night, and parking fees have increased significantly, impacting visitor spending behavior [8] - In response to criticism, some properties have begun offering value-focused promotions to attract visitors [11] Future Outlook - Despite current challenges, there is optimism for recovery, with upcoming events like the Formula 1 Grand Prix expected to drive tourism growth [13] - The Las Vegas Convention and Visitors Authority has invested $3.25 million in marketing campaigns targeting international markets [13]

Core Viewpoint - Galaxy Entertainment reported a mixed performance in 2Q25, with net revenue growth but lower-than-expected EBITDA, leading to revised earnings forecasts and a lowered target price while maintaining a Buy rating [1][4]. Financial Performance - 2Q25 net revenue reached HK$12.0 billion, reflecting an 8% quarter-over-quarter increase and a 10% year-over-year increase [1]. - Normalized adjusted EBITDA was HK$3.2 billion, showing a 7% increase QoQ but a 1% decrease YoY, attributed to a lower mass market hold rate [1]. - Total gross gaming revenue, mass market revenue, slot machine revenue, and VIP rolling chip volume recovered to 82%, 130%, 138%, and 31% of 2Q19 levels, respectively [2]. - EBITDA recovery was at 79% of the 2019 level [2]. Dividend and Cash Position - As of June 30, 2025, the company's net cash stood at HK$30.3 billion [4]. - The interim dividend is set at HK$0.70 per share, with a payout ratio increased to 58% from 50% in 2024 [4]. New Developments - The Capella Hotel, a 95-all-suite project, has been in trial operation since May, with full opening expected soon [3]. - Construction of Phase 4 of Galaxy Macau is progressing, with completion scheduled for 2027, featuring high-end hotel brands, a theater with approximately 5,000 seats, green gardens, a water resort deck, and a casino [3]. Investment Outlook - The target price has been revised down from HK$55 to HK$50, indicating a 24% upside potential, while the Buy rating is maintained due to the resilience of the gaming business and long-term growth potential [1][4].

Core Viewpoint - Golden Entertainment reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.10 per share, but showing improvement from a loss of $0.37 per share a year ago [1][2] Financial Performance - The company posted revenues of $160.84 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.91% and down from $174.05 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once [2] Stock Performance - Golden Entertainment shares have declined approximately 18.2% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $170.28 million, and for the current fiscal year, it is $0.58 on revenues of $666.38 million [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable [6] Industry Context - The Gaming industry, to which Golden Entertainment belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Snail, Inc. (SNAL), is expected to report a quarterly loss of $0.11 per share, indicating a year-over-year change of -120% [9]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Golden Entertainment despite lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Golden Entertainment is expected to report quarterly earnings of $0.10 per share, reflecting a year-over-year increase of +127%, while revenues are projected to be $162.32 million, down 6.7% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.54% lower in the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a negative Earnings ESP of -41.85% for Golden Entertainment, suggesting analysts have become bearish on the company's earnings outlook [11][10]. Historical Performance - In the last reported quarter, Golden Entertainment was expected to post earnings of $0.22 per share but only achieved $0.10, resulting in a surprise of -54.55%. Over the last four quarters, the company has only beaten consensus EPS estimates once [12][13]. Investment Considerations - Despite the negative indicators, the potential for stock movement is influenced by various factors beyond earnings results, including unforeseen catalysts and overall market conditions [14][16].