Business earnings begin on Wednesday, with lingering queries regarding Macau, regional markets, and Las Vegas casinos' financial health.
The second-quarter earnings season for casino stocks and sports betting companies is upon us, and analyst projections indicate generally positive results.
Las Vegas Sands Beats Estimates
Las Vegas Sands reported Q2 earnings per share (EPS) of $0.79, beating analyst estimates by $0.26, with revenue reaching $3.18 billion—a 15% year-over-year increase. Bank of America described this as "an incredible quarter in Singapore," driven by strong growth in Macao and Singapore properties.
TKO Records EPS Beat
For a sports betting company, TKO (The Kinetik Organization, a sports media and betting company) recorded Q2 EPS of $1.17, surpassing analyst expectations of $1.05 EPS. While Bank of America's direct analyst commentary on TKO was not specified in the results, the earnings beat aligns with positive analyst projections.
Bank of America's Broader Outlook
Bank of America’s broader outlook on trading and investment banking segments for the financial sector showed resilience in trading income and a positive future deal activity outlook, which indirectly supports optimism in market sectors including gaming and betting.
Upcoming Earnings Reports
Other earning reports will be released through August 7, including GLPI, Red Rock Resorts, Caesars Entertainment, MGM Resorts International, VICI Properties, Penn Entertainment, Wynn Resorts, and Full House. Churchill Downs and Boyd Gaming will hold earnings calls on July 24.
Price Targets and Estimates
Shaun Kelley, a research analyst for BofA, is 2% above Wall Street estimates for Macau and 1% above for regional casinos, though below Wall Street for the Strip. Kelley's price outlook for Las Vegas Sands is based on approximately 12x their 2025 EBITDAR estimate. For MGM Resorts International, Kelley expects a price outlook based on approximately 7x their 2026 EBITDAR estimate.
DraftKings is expected to have second-quarter EBITDA of $250 million to $300 million. DraftKings has a price target of $50, and Churchill Downs has a price target of $115. Boyd Gaming has a price target of $95, and Penn Entertainment has a price target of $20. Caesars Entertainment has a $35 price outlook. Wynn Resorts stock has been on the rise over the last month, closing at $111 on Tuesday and up $27 so far this year.
Notable Events
Boyd Gaming will provide clues about the neighborhood casino market in Las Vegas and discuss its decision to sell its 5% stake in FanDuel for $1.75 billion. Kelley estimates that same-store regional-casino trends are up 1% year over year versus 5% in May. Kelley also expects online sports betting hold in June to be solid for the second month in a row.
Macau and Regional Casinos Outlook
Bank of America is projecting upside for Macau and regional casinos, strength in online sports betting, and downside on the Las Vegas Strip. This projection is in line with Kelley's estimates for Las Vegas locals casinos being in line with consensus.
Unscheduled Earnings Release
Las Vegas Sands hasn't scheduled a release date for its earnings.
In summary, Bank of America analysts project solid earnings beats for key casino stocks like Las Vegas Sands and positive EPS surprises for sports betting companies such as TKO in Q2 2025. This reflects strong operational performance in gaming markets and a growing sports betting sector.
- The finance sector, driven by strong business in gaming and betting, shows resilience in trading income and a positive outlook for future deal activity, as suggested by Bank of America's broader outlook.
- In technology-driven sports media and betting, TKO, like Las Vegas Sands in finance, recorded a Q2 earnings per share (EPS) beat, surpassing analyst expectations—a sign of growth and potential in the sports betting industry.
