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Golden Entertainment (GDEN – free report) is a diversified gaming company that provides casino, distributed gaming and lottery services. The company’s gaming segment includes Golden Casino Group, PT’s Entertainment Group and Golden Route Operations.
Analysts recently cut their earnings estimates for Golden Entertainment across the board, propelling the stock to a Zacks Rank #5 (Strong Sell).
Image Credit: Zacks Investment Research
Let’s take a closer look at where the company is currently.
current ranking
Golden Entertainment has struggled to beat quarterly estimates, missing earnings and revenue expectations for several quarters in a row. Over the past four quarters, the average EPS surprise was negative -26%.
Shares came under selling pressure after its latest earnings report, but have since rebounded, as you can see in the chart below.
Image Credit: Zacks Investment Research
Regarding the most recent quarter, GDEN’s earnings missed estimates by about 20%. Quarterly revenue totaled $278 million, slightly below expectations and roughly flat year-over-year. The chart below shows the company’s revenue by quarter.
Image Credit: Zacks Investment Research
Shares are trading at 1.2 times forward price-to-sales, just above the five-year median of 0.8 times and below the Zacks Consumer Discretionary Average. The stock has a Value Style Score of “B.”
Image Credit: Zacks Investment Research
Growth is expected to slow for the company this fiscal year, with the Zacks Consensus EPS estimate of $1.76, suggesting a 30% year-over-year decline in earnings. Nonetheless, FY24 will return to growth with slightly higher earnings expected.
the bottom line
Negative analyst revisions to earnings estimates and weak quarterly results paint a challenging picture for the company’s stock in the near term.
Golden Entertainment (GDEN – free report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook over the past few months.
For those looking for a strong stock, it’s a good idea to focus on stocks with a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) — stocks with significantly stronger earnings prospects and the potential to Bringing explosive growth near-term earnings.
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