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Century Casinos Post Wider Q4 Loss For 2023 Than Previous Year

James Chittick

Century Casinos, Inc. has announced a wider net loss for the fourth quarter of 2023 compared to the previous year.

The quarterly net loss of $10.8million from Century Casinos equates to $0.36 per share. Last year, those figures were $4.04m, or $0.14 per share.

But net revenue increased to $143.8m from $103.8m the previous year, a rise of 39%.

Century Casinos’ quarterly loss of $0.36 per share was marginally higher than the Zacks Consensus Estimate of a $0.35 loss. These figures have been adjusted for non-recurring items.

The quarterly report shows an earnings surprise of -2.86%. During the previous quarter, the casino operator was expected to post earnings of $0.15 per share, but instead produced a $0.47 loss, equating to a surprise of -413.33%.

Century Casinos has been unable to surpass consensus EPS estimates at all during the previous four quarters.

Belonging to Zacks Gaming Industry, Century Casinos generated $143.8m in revenue for the final quarter of 2023. This surpassed Zacks Consensus Estimate by 0.81%.

This is up on the previous year’s revenue of $103.8m in the same period. The company has beaten consensus revenue estimates in each of the last four quarters.

Determining the sustainability of the stock’s immediate price movement based on these recently released numbers and future earnings expectations will depend predominantly on management’s commentary on the earnings call.

Since the start of 2024, Century Casinos have lost about 36.9% in share value versus the 8.3% gain of the S&P 500.

Where Does Century Casinos Go From Here?

With Century Casinos underperforming in the market, investors will be asking what comes next for the stock.

This question is not a simple one. There won’t be an easy answer, but a reliable measure for investors may be the company’s earnings outlook.

This includes both earnings expectations for the coming quarters, and how these expectations have changed in recent months.

Research has shown a strong correlation between near-term stock movements and earnings estimate revision trends. These revisions can be tracked individually by investors, or else they can use rating tools such as the Zacks Rank.

These tools have a solid record and are usually trustworthy, utilising the power of earnings estimate revisions.

Century Casinos Posts Unfavorable Estimate Revisions Trend

Before this earnings release, the estimate revisions trend for Century Casinos was ‘unfavorable’. The direction and magnitude of the estimate revisions may well differ after the company’s newly-published earnings report, but the current status equates to a Zacks Rank of #5 (Strong Sell) for the stock.

This means the shares are expected to underperform the market in the near future.

For now, estimates for the upcoming quarters and current fiscal year may well change drastically in the next few days. Currently, the consensus EPS estimate is -$0.32, on a revenue of $141.9m for the next quarter. For the fiscal year, these figures are -$0.76 on $618.9m in revenue.

The wider industry’s outlook can also have an impact on the stock’s performance, something investors should bare in mind. As for the Zacks Industry Rank, Gaming is in the bottom 42% of 250 plus Zacks industries at present.

Research has shown the top 50% of Zacks-ranked industries tend to outperform the bottom 50% significantly.

Another stock in the gaming industry, Enthusiast Gaming Holdings, has yet to post their results for Q4 of 2023. The digital media company expects to show quarterly losses of $0.02 per share, representing a year-to-year change of +66.7%.

The quarterly consensus ESP estimate has not changed in the last 30 days, with Enthusiast Gaming Holdings expected to hit $46.7m in revenue, an increase of 17.4% year-on-year.

James Chittick
James Chittick