Full House Resorts Reports Revenue Beat, But Misses on EPS

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While their revenue of $50.1M beat expectations by $4.75M, the company reported a GAAP earnings per share of -$0.33, missing expectations by $0.24. The company has seen its stock price rise over the past year due to the growth of its business, but the weak earnings report is likely to cause a slight dip in their stock price. Full House Resorts ($NASDAQ:FLL) has been expanding its portfolio of properties, including the acquisition of two resorts in Nevada and Mississippi earlier this year. Despite the weak earnings report, investors and analysts remain optimistic about Full House Resorts’ future prospects. The company has seen strong revenue growth over the past year and is expected to continue to benefit from the continued recovery of the hospitality industry.

Earnings

FULL HOUSE RESORTS recently released its earnings report for FY2022 Q4 ending December 31 2022. The report showed a total revenue of 36.08M USD, a 16.6% decrease from the previous year and a 238.2% decrease in net income, reaching 6.98M USD in loss. This is a significant decrease from the 38.27M USD TOTAL HOUSE RESORTS earned in the previous year.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for FLL. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for FLL. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for FLL. More…

Key Ratios Snapshot

Some of the financial key ratios for FLL are shown below. More…

Price History

The news sent FULL HOUSE RESORTS’ stock down 2.0% on Monday; it opened at $6.5 and closed at $6.3, down from its prior closing price of 6.4. Despite the miss on EPS, the company’s revenue beat boosted investor confidence in the company’s performance. FULL HOUSE RESORTS also recently announced a partnership with PokerStars, one of the largest online poker platforms in the world, which could help drive further revenue growth in the future. Live Quote…

Analysis

GoodWhale has conducted an analysis of FULL HOUSE RESORTS’s health to determine what type of investors may be interested in such a company. Our Star Chart has classified FULL HOUSE RESORTS as a ‘sloth’, which we conclude is a company that has achieved revenue or earnings growth slower than the overall economy. FULL HOUSE RESORTS also has an intermediate health score of 5/10, indicating it is likely to safely ride out any crisis without the risk of bankruptcy. Although FULL HOUSE RESORTS is strong in liquidity, medium in profitability and weak in asset, dividend, and growth, it may still be attractive to investors who are looking for stable returns. As long as the company can maintain its current level of performance and avoid overextending itself, it may be worth consideration for risk-averse investors. More…

Peers

Full House Resorts Inc is in competition with Century Casinos Inc, Bloomberry Resorts Corp, Ballys Corp. These companies are all vying for a share of the gambling market. Full House Resorts Inc is a publicly traded company that owns, develops, and manages gaming properties across the United States. The company’s portfolio includes seven casinos, two horse racing tracks, and a hotel. Full House Resorts Inc is committed to providing an exceptional gaming experience for its guests. The company’s goal is to become the premier gambling destination in the United States.

– Century Casinos Inc ($NASDAQ:CNTY)

Century Casinos, Inc. operates as a gaming company in the United States, Canada, Poland, and South Africa. It operates through three segments: Casinos, Horse Racing, and Corporate. The Casinos segment owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado; Century Casino & Hotel in Edmonton, Alberta, Canada; Century Casino Bath in the United Kingdom; Century Pueblo Magico Hotel and Casino in Monterrey, Mexico; and Mountaineer Casino, Racetrack & Resort in Chester, West Virginia. The Horse Racing segment owns and operates live horse racing and pari-mutuel wagering properties in Alberta and West Virginia. The Corporate segment provides management services to casinos in North America and Europe. As of December 31, 2020, the company owned and operated 10 casinos comprising approximately 2,200 gaming machines, 80 table games, and 1,100 hotel rooms. It also owned and operated live horse racing and pari-mutuel wagering operations at 3 racetracks in 2 states; and owned and operated off-track betting network in Alberta.

– Bloomberry Resorts Corp ($PSE:BLOOM)

As of 2022, Burberry Resorts Corp has a market cap of 72.15B and a Return on Equity of 11.83%. The company operates in the leisure and hospitality industry, with a focus on luxury resorts. Burberry has a strong presence in Europe, the Middle East, and Asia Pacific, and is known for its high-end hotels and resorts. The company has been expanding its footprint in recent years, and its market cap reflects this growth. Burberry is a well-established company with a strong brand, and its market cap and ROE reflect this.

– Ballys Corp ($NYSE:BALY)

Bally’s Corporation, formerly known as Twin River Worldwide Holdings, Inc., is a gaming and entertainment company that owns and operates casinos, horse racing venues, and entertainment venues in the United States. The company has a market cap of $962.8 million and a return on equity of 3.13%. The company’s casinos include Bally’s Las Vegas, Harrah’s Cherokee Casino Resort, and Tropicana Atlantic City. The company also owns and operates horse racing venues in Kentucky and Rhode Island. In addition to its gaming and entertainment operations, Bally’s also owns and operates a number of food and beverage outlets, retail stores, and hotels.

Summary

Full House Resorts recently released its financial earnings report which showed a GAAP EPS of -$0.33, missing analyst estimates by $0.24. Revenue came in at $50.1M, beating estimates by $4.75M. This report highlights that the company has been struggling financially, as evidenced by the negative EPS figure.

Investors should watch for any upcoming announcements, such as changes to management or restructuring, that could potentially turn the company around and improve its financials. In the meantime, investors should be aware of the downside risk associated with investing in Full House Resorts.