Monarch Casino & Resort Wednesday reported revenue of $115.3 million for the second quarter of 2022, a year over year increase of 18.0%. Net income of $19.4 million, an increase of 7.1% from the same quarter in 2021.
Quarterly earnings for the Reno, Nevada-based operator were $1.11 per share. That figures outpaced Zacks Investment Research consensus estimate for the quarter of $1.08 per share.
Monarch operates the Atlantis Casino Resort Spa in Reno and the Monarch Casino Resort Spa Black Hawk in Colorado.
“Monarch’s solid second quarter results reflect our strong market position in both Reno and Black Hawk,” said Monarch CEO and Co-chairman John Farahi. “Our quarterly financial results benefited from the continued successful ramp-up of our recently expanded and enhanced Black Hawk property as well as our team’s ability to efficiently manage the business in an ever-changing operating environment.
In analysis on its website, Zacks stated that the quarterly report represented an “earnings surprise” of 2.78%.
“A quarter ago, it was expected that this casino operator would post earnings of $0.85 per share when it actually produced earnings of $0.92, delivering a surprise of 8.24%,” the statement read.
Farahi noted that the operator has partially offset ongoing cost increases through price adjustments.
“Our ability to nimbly manage and invest in our properties, while maintaining a pristine balance sheet, has positioned us well for the second half of the year,” Farahi said.
A redesign and upgrade of the original hotel tower at the Reno property encompassing about 20% of room inventory, was completed on schedule and budget. The rooms moved back into inventory ahead of the Memorial Day weekend.
“While Reno remains a very competitive market, we believe our focus on operational execution and capital investments in Atlantis will help us enhance our property’s award-winning appeal and competitiveness,” Farahi said.
Farahi noted that upgrades of the property’s retail space are expected to be completed early in the fourth quarter this year.
“Our favorable balance sheet positions Monarch to continue to evaluate potential acquisitions to drive long-term value for our stockholders,” Farahi said.
Monarch shares opened Thursday at $61.55 on the Nasdaq.
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