Monarch Casino & Resort’s 4th quarter and annual report is good news for investors.
The Reno, Nevada-based gaming operator Thursday reported revenue of $111.1 million for the fourth quarter and $395.4 million for the year, “both all-time records,” according to Monarch Co-Chairman and CEO John Farahi.
Monarch owns and operates the Atlantis Casino Resort Spa in Reno, Nevada and the Monarch Casino Resort Spa in Black Hawk, Colorado.
Farahi said in a statement that the transformation of Monarch Black Hawk into a “full-scale casino resort spa” and the elimination of betting limits that expanded the property’s game mix bolstered Monarch’s report. He also cited the completion of a redesign and upgrade of high-end suites at the Atlantis Casino Resort Spa.
“We believe that all these factors contributed to record fourth quarter and full-year financial results,” Farahi said.
According to an analyst statement issued by Zacks Investment Research, the quarterly report “represents an earnings surprise of 13.33%. A quarter ago, it was expected that this casino operator would post earnings of $1.01 per share when it actually produced earnings of $1.15, delivering a surprise of 13.86%.
“Over the last four quarters, the company has surpassed consensus EPS (earnings per share) estimates four times.”
Farahi cited “new COVID variants” as contributing to the labor market and wage pressure that have increased labor costs. He also stated that supply chain constraints and price inflation impacted operating costs.
But the year-end and quarterly reports give Farahi reason to be optimistic going forward.
“We expect that 2022 will be another year of strong operating performance and financial result,” Farahi said. “We continue to evaluate acquisition opportunities where we can fully leverage our development expertise and operational excellence. We remain committed to deploying capital in a manner that will position Monarch to grow and build long-term value for our loyal stockholders.”
