Core Viewpoint - Caesars Entertainment Inc. is considered one of the best sin stocks to buy in 2026, with a Market Outperform rating and a price target of $37 set by Citizens analyst Jordan Bender, who believes that betting exchanges pose minimal competitive risk to traditional gambling establishments [1]. Group 1: Company Overview - Caesars Entertainment Inc. operates as a gaming and hospitality company, managing properties in 18 states that include slot machines, video lottery terminals, e-tables, hotel rooms, and table games such as poker [4]. Group 2: Market Analysis - An analysis of NFL Week 14 games revealed that Kalshi's pre-game odds were 14% lower than DraftKings and 15% lower than FanDuel when transaction fees were considered, indicating that while Kalshi's pricing improved week-over-week, the overall pricing discount was worse than established sportsbooks [2]. - Citizens maintained a positive outlook on Caesars Entertainment despite concerns regarding the impact of betting platforms on traditional operators, asserting confidence that these platforms would not threaten the financial health of existing players in legal sports betting states [3].

Core Insights - Caesars Entertainment reported a revenue of $2.87 billion for the quarter ended September 2025, reflecting a slight decline of 0.2% year-over-year and a miss of 0.68% against the Zacks Consensus Estimate of $2.89 billion [1] - The company's earnings per share (EPS) was -$0.27, a significant drop from -$0.04 in the same quarter last year, resulting in an EPS surprise of -145.45% compared to the consensus estimate of -$0.11 [1] Financial Performance Metrics - In Las Vegas, the table game drop was reported at $658 million, below the average estimate of $717.4 million, while the table game hold was 17.4%, lower than the estimated 19.5% [4] - The slot handle in Las Vegas was $2.54 billion, missing the average estimate of $2.62 billion [4] - Caesars Digital's iGaming handle was $4.76 billion, compared to the estimated $5.03 billion, with an iGaming hold of 3.6%, matching the estimates [4] - The sports betting hold for Caesars Digital was 7.8%, exceeding the average estimate of 7.1% [4] - Net revenues from Las Vegas were $952 million, significantly below the average estimate of $1 billion, marking a year-over-year decline of 10.4% [4] - Regional net revenues were reported at $1.54 billion, slightly above the average estimate of $1.48 billion, reflecting a year-over-year increase of 6.2% [4] - Caesars Digital net revenues were $311 million, below the average estimate of $325.06 million, but showing a year-over-year growth of 2.6% [4] - Managed and branded net revenues reached $73 million, surpassing the average estimate of $69.07 million, with a year-over-year increase of 7.4% [4] - Corporate and other net revenues were reported at -$3 million, worse than the estimated -$1.7 million, representing a 40% decline year-over-year [4] - Las Vegas casino net revenues were $260 million, below the average estimate of $270.53 million, indicating an 11.6% year-over-year decrease [4] Stock Performance - Over the past month, shares of Caesars Entertainment have declined by 19.1%, contrasting with a 3.6% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The third quarter net revenue was $475.6 million, up 1.6% from the prior year's third quarter, with adjusted EBITDA of $190.9 million, up 4.5% [10] - The adjusted EBITDA margin was 40.1%, an increase of 110 basis points from the prior year [10] - The company generated $128.5 million in operating free cash flow, translating to $1.21 per share, bringing year-to-date cumulative free cash flow to $335.3 million, or $3.17 per share [10][11] Business Line Data and Key Metrics Changes - Las Vegas operations achieved a record third-quarter net revenue of $468.6 million, up almost 1% year-over-year, with adjusted EBITDA of $209.4 million, up 3.4% [9] - The hotel segment performed exceptionally well, generating near-record results despite renovations, with occupancy increasing across the portfolio [12] - The food and beverage segment achieved record revenue and near-record profitability, supported by higher cover counts [12] Market Data and Key Metrics Changes - The company reported continued strength in carded slot play across its database, including regional and national segments, with robust visitation and net theoretical win [11] - The local market is expected to add more than 6,000 new households within a three-mile radius of the Durango property over the next few years [9] Company Strategy and Development Direction - The company is focused on executing its development pipeline, including significant investments in Durango Casino Resort, Sunset Station, and Green Valley Ranch [11][17] - The next phase of the Durango Master Plan will expand the property significantly, adding new amenities to enhance guest experience and drive repeat visitation [8][9] - The company aims to maintain operating discipline and enhance shareholder returns through a balanced capital allocation strategy [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and resilience of the business, despite ongoing construction disruptions [13][22] - The Las Vegas locals' market is viewed as fundamentally different from the Strip, with a loyal customer base driving consistent revenue [42] - The company anticipates continued stability in its core slot and table games business, with a return to normal hold in sports betting [12][32] Other Important Information - The company approved an increase in regular cash quarterly dividends to $0.26 per Class A share, reflecting confidence in long-term earnings power [20] - The total project cost for the Durango expansion is estimated at approximately $385 million, with construction expected to begin in January [8][9] Q&A Session Summary Question: Can you talk about the rationale for the Durango expansion? - Management highlighted the strong performance of Durango and the lack of competition in the area, expecting similar returns on the expansion as the initial build [27][28] Question: What was the impact of sports betting hold this quarter? - Management noted a return to normal hold after an unfavorable hold last year, estimating a disruption impact of about $2.5 to $3 million for the quarter [32] Question: How did the hotel segment perform compared to the Strip? - The hotel segment showed resilience, with occupancy up and RevPAR only slightly down, outperforming the Strip by about 25% on an ADR basis [38] Question: What is the expected disruption from ongoing construction projects? - Management expects disruption to extend beyond 2025 into 2026, with estimated impacts of around $8 million for Q4 [32][94] Question: How is the tavern business performing? - The company has eight taverns under contract, with two operational and positive early performance indicators, attracting a younger customer base [96][97]

Core Viewpoint - Caesars Entertainment (CZR) stock is currently trading within a support range of $22.21 to $24.54, from which it has historically rebounded significantly [2][3] Group 1: Stock Performance - Over the last decade, CZR stock has attracted buying activity at its current support levels four times, yielding an average peak return of 115.7% [3] - The stock has experienced significant declines in the past, including a nearly 90% drop during the Covid pandemic and a 73% decline amid inflation shocks [5] Group 2: Company Overview - Caesars Entertainment operates as a gaming and hospitality entity, managing 52 properties across the U.S. with approximately 55,700 gaming machines [3] - The company has recorded a revenue growth of -0.1% over the last twelve months and an average growth of 3.2% over the past three years [6] Group 3: Financial Metrics - CZR has a free cash flow margin of nearly 0.4% and an operating margin of 19.3% for the last twelve months [6] - The stock is currently trading at a price-to-earnings (PE) multiple of -25.1, indicating that the company is currently operating at a loss [6] Group 4: Investment Considerations - Compared to the S&P 500, CZR offers a lower valuation and revenue growth but has superior operating margins [6] - The Trefis High Quality (HQ) Portfolio, which includes CZR, has historically outperformed its benchmark indices, providing superior returns with reduced risk [8]

Company Overview - Accel Entertainment appointed Brett Summerer as CFO, effective immediately, succeeding acting CFO Mark Phelan [5] - Summerer previously served as CFO for Verano, where he led a finance and IT team and managed over 20 M&A deals [2] - The company operates more than 27,000 regulated electronic gaming machines, including slot machines [4] Financial Strategy and M&A Focus - Accel is actively evaluating M&A opportunities for expansion in the local gaming industry, with a focus on disciplined and accretive transactions [3][8] - The company aims to execute a multipronged growth strategy targeting revenue, cash flow, and adjusted EBITDA growth [7] - Accel recently closed a $900 million senior secured credit facility to enhance liquidity and reduce capital costs, which includes $300 million in revolving credit and a $600 million term loan [8][9] Recent Financial Performance - For Q2 ended June 30, Accel reported record quarterly revenue of $335.9 million, an 8.6% increase year-over-year [10] - However, net income fell 50.2% year-over-year to $7.3 million, attributed partially to a loss on the change in the fair value of contingent earnout shares [10]

Core Viewpoint - Butler National Corporation has initiated a new stock repurchase program of $5 million, closing its previous 2016 program, reflecting the company's commitment to enhancing shareholder value and confidence in long-term growth prospects [2][3]. Group 1: Stock Repurchase Details - The company has repurchased 2.41 million shares of its common stock since April 30, 2025, at an average price of $1.51 per share [1]. - The new stock repurchase program is authorized through April 2027 and allows for the repurchase of approximately 4.8% of the 64,854,736 outstanding shares at current market prices [2]. - As of July 31, 2025, the company has paid $2.9 million for the repurchased shares, with remaining payment obligations of $0.9 million due before December 31, 2025 [4]. Group 2: Management and Strategic Intent - The Board of Directors has prioritized stock repurchases, with management actively seeking opportunities to repurchase shares through private transactions [3]. - The new stock repurchase program is indicative of the Board's commitment to enhancing shareholder value and reflects confidence in the company's long-term growth prospects [3]. Group 3: Company Overview - Butler National Corporation operates in the Aerospace and Professional Services sectors, focusing on aircraft modification, maintenance, and gaming management services [6]. - The Aerospace Products segment includes design, manufacture, and service of structural modifications and electronic systems for various aircraft, while the Professional Services segment manages a gaming facility in Dodge City, Kansas [6].

Financial Performance & Strategic Review - Century Casinos' Q2 2025 net operating revenue reached $15081 million[122] - Adjusted EBITDAR for Q2 2025 was $3030 million[122] - The company initiated a strategic review process to explore options for enhancing shareholder value, including potential asset sales, partnerships, or a company sale[108] Regional Market Overview - US regional Gross Gaming Revenue (GGR) has shown stable growth since 2001[20] - Missouri's gaming revenue was approximately $19 billion in 2024, with over 9% growth since 2019[63] - West Virginia's gaming market experienced 43% growth from 2019 to 2024[39] Capital Expenditures & Debt - Total growth capital expenditures are estimated at $385 million, excluding VICI funding[101] - Regular maintenance capital expenditures are projected at $68 million spent and $81 million remaining for 2025[101] - The company's total principal debt as of June 30, 2025, was $3381 million[99] - Net debt leverage was 62x, with expectations to trend towards 47-60x by the end of 2025[96]

Financial Data and Key Metrics Changes - In Q2 2025, Xcel generated record quarterly revenue of $336 million, representing a year-over-year growth of 9% [5][13] - Adjusted EBITDA for the second quarter was $53 million, a year-over-year increase of 7% compared to Q2 2024 [13] - Total revenue without the Fairmont Park acquisition was $317 million, reflecting a year-over-year growth of 2.4% [13] Business Line Data and Key Metrics Changes - Revenue from the Illinois distributed gaming market was $245 million, up over 8% year-over-year [6] - Montana's distributed gaming route grew revenue by 2.6% [7] - Revenue from developing markets, Nebraska and Georgia, increased by 26% and 35.5% respectively, while Nevada's revenue declined by 7.7% due to the loss of a key customer [7][8] Market Data and Key Metrics Changes - Xcel operated approximately 27,400 terminals across more than 4,400 locations, representing year-over-year increases of 3.4% and 3.1% respectively [13] - The local gaming market is estimated at over $15 billion nationally, with Xcel focusing on smaller, less professional operators for acquisition opportunities [11][30] Company Strategy and Development Direction - Xcel aims to leverage its competitive position and healthy balance sheet to pursue a multi-pronged growth strategy, focusing on overlooked M&A opportunities [6][11] - The company plans to enhance its operating expertise and expand its footprint while maintaining strong financial discipline [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the local gaming segment's resilience and growth potential, expecting continued revenue and EBITDA growth [6][22] - The company is optimistic about the contributions from the Fairmont Park Casino and Racing, as well as the revenue-sharing agreement with FanDuel [10][22] Other Important Information - Capital expenditures for Q2 totaled approximately $26 million, with a full-year forecast of $75 million to $80 million [19][20] - The company repurchased 634,000 shares at an average price of $10.58 per share, totaling $6.7 million in Q2 [20] Q&A Session Summary Question: Growth in Illinois market - Management noted consistent growth throughout the quarter without significant peaks or valleys [26] Question: M&A opportunities and leverage - Management stated they are opportunistic in acquisitions but will not leverage the company excessively, maintaining a conservative approach [28][29] Question: Impact of Tito implementation in Illinois - Management indicated it is too early to assess the impact of Tito, with expectations for improved player experience and reduced collection costs in the future [38] Question: Nevada market growth post key customer loss - Management reported slight revenue growth year-over-year despite the loss of a key customer, focusing on higher-margin locations [40][41] Question: Performance expectations for Fairmont Park - Management expressed positive indicators for Fairmont Park, aligning with internal expectations, and anticipates significant contributions in 2026 [44][45]

Core Points - Butler National Corporation has adopted new Corporate Governance Guidelines to enhance the structure and practices of its Board of Directors [1][2] - The Guidelines include a mandatory retirement age for directors at 75 years old, alongside existing policies like stock ownership guidelines and annual performance reviews [2][3] - The company has made significant strides in corporate governance, including annual elections for all directors and separating the roles of Chairman and CEO [3][4] Company Overview - Butler National Corporation operates in the Aerospace and Professional Services sectors, focusing on aircraft modification, maintenance, and gaming management services [5] - The Aerospace Products segment involves design, manufacture, and service of aircraft modifications and electronic systems, while the Professional Services segment includes managing a gaming facility in Dodge City, Kansas [5]