Overview

* Monarch Q2 revenue rises 6.8% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 beats analyst estimates, per LSEG data, reflecting operational efficiencies

* Company repurchased 240,395 shares, totaling $19.8 mln, funded by cash flow

Outlook

* Monarch expects continued strong balance sheet and free cash flow.

* Monarch evaluates potential M&A opportunities for long-term value.

Result Drivers

* CASINO REVENUE - Casino revenue increased 12.1% year-over-year, driving overall revenue growth, per CEO comment

* OPERATIONAL EFFICIENCIES - Improved labor management and operational efficiencies led to a 320 basis point increase in operating margin, per CEO comment

* HOTEL REVENUE DECLINE - Hotel revenue declined 3.1% due to less convention group business, impacting overall revenue, per company report

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $136.91 $129.80

Revenue mln mln (5

Analysts

)

Q2 EPS $1.44

Q2 Beat $51.29 $44.40

Adjusted mln mln (5

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the casinos & gaming peer group is "buy."

* Wall Street's median 12-month price target for Monarch Casino & Resort Inc ( MCRI ) is $84.00, about 2.2% below its July 15 closing price of $85.86

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)