Yahoo Finance Monarch Casino & Resort, Inc. (NASDAQ:MCRI) Just Released Its First-Quarter Earnings: Here's What Analysts Think
Last week, you might have seen that Monarch Casino & Resort, Inc. (NASDAQ:MCRI) released its first-quarter result to the market. The early response was not positive, with shares down 4.6% to US$67.34 in the past week. It looks like the results were a bit of a negative overall. While revenues of US$122m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.4% to hit US$0.93 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Monarch Casino & Resort
Taking into account the latest results, Monarch Casino & Resort's four analysts currently expect revenues in 2024 to be US$512.0m, approximately in line with the last 12 months. Statutory per share are forecast to be US$4.48, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$512.7m and earnings per share (EPS) of US$4.49 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$72.75, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Monarch Casino & Resort analyst has a price target of US$76.00 per share, while the most pessimistic values it at US$69.00. This is a very narrow spread of estimates, implying either that Monarch Casino & Resort is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Monarch Casino & Resort's revenue growth is expected to slow, with the forecast 1.5% annualised growth rate until the end of 2024 being well below the historical 21% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Monarch Casino & Resort.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$72.75, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Monarch Casino & Resort going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Monarch Casino & Resort .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
