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You are at:Home»Entertainment»Golden Entertainment (Nasdaq: GDEN) is missing the sales targets of the first quarter
Entertainment

Golden Entertainment (Nasdaq: GDEN) is missing the sales targets of the first quarter

May 10, 2025005 Mins Read
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The operator of casino, tavern and machines with Golden Entertainment (NASDAQ: GDEN) has dropped market income expectations in the first trimester CY2025, sales reaching 7.6% over a year at 160.8 million dollars. Its GAAP profit of $ 0.09 per share was 27.5% lower than the consensual estimates of analysts.

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  • Income: 160.8 million dollars against the estimates of analysts of $ 164.2 million (7.6% decrease in annual shift, 2.1% Miss)

  • EPS (GAAP): $ 0.09 compared to analysts’ expectations of $ 0.12 (27.5% Miss)

  • Adjusted Ebitda: $ 37.58 million against analysts’ estimates of $ 37.17 million (23.4% margin, 1.1% beat)

  • Operational margin: 6.9%, against 46% in the same quarter last year

  • Market capitalization: $ 685.7 million

Blake Sartini, president and chief executive officer of Golden Entertainment, said: “Our concentration on customer experience and operational efficiency allowed us to generate solid financial performance despite uncertain macroeconomic conditions. Our business remains resilient and we intend to continue to buy our ordinary actions in a opportunistic way under our current buy -back authorization. “

Founded in 2001, Golden Entertainment (NASDAQ: GDEN) is a games company in operating casinos, taverns and distributed game platforms.

The long -term sales performance of a company is a signal of its overall quality. Any business may have had short -term success, but the most efficient benefit from sustained growth for years. Golden Entertainment’s demand has been low in the past five years, because its sales have dropped to an annual rate of 7%. It was not an excellent result and it is a bad base for our analysis.

Golden Entertainment returned quarterly
Golden Entertainment returned quarterly

At Stockstory, we put the most accent on long -term growth, but in the discretionary power of consumers, a stretched historical vision can miss a company that has successfully completed a new product or a successful trend. The recent performances of Golden Entertainment show that his request has remained abolished because his income has decreased by 23.8% per year in the past two years. Note that Covid injured Golden Entertainment’s business in 2020 and a part of 2021, and he rebounded considerably.

Golden Entertainment Growing returned over the year
Golden Entertainment Growing returned over the year

This quarter, Golden Entertainment missed the estimates of Wall Street and declared a drop in income of 7.6% in annual sliding, generating $ 160.8 million in revenues.

For the future, sales analysts expect revenues to increase 3.4% in the next 12 months. Although this projection implies that its more recent products and services stimulate better high level performance, it is still below the average of the sector.

Young investors today have probably not read timeless lessons in Gorilla Game: choosing high -tech winners because it was written over 20 years ago when Microsoft and Apple first established their supremacy. But if we apply the same principles, corporate software stocks taking advantage of their own generators’ capacities may well be the gorillas of the future. So, in this spirit, we are delighted to present our special free report on A stock of profitable and fast -growing corporate software that already rises the wave of automation and seeks to catch generative AI.

Operating margin is a key measure of profitability. Consider it as a net profit – the essential – excluding the impact of taxes and interest on debt, which are less linked to the fundamentals of companies.

The operating margin of Golden Entertainment has dropped in the last 12 months, but it has another 30.6% in the past two years, Elite for a discretionary consumption company. This shows that it is a well managed company with an effective cost structure.

Golden Entertainment dragging the 12 -month operating margin (GAAP)
Golden Entertainment dragging the 12 -month operating margin (GAAP)

This quarter, Golden Entertainment generated an operating profit of 6.9%, down 39.2 percentage points from year to year. This contraction shows that it was less effective because its expenses increased compared to its income.

Income trends explain the historical growth of a business, but the long -term change in action by action (BPA) highlights the profitability of this growth – for example, a company could inflate its sales through excessive expenditure in advertising and promotions.

The annual Golden Entertainment EPS have gone from negative to positive in the past five years. This is encouraging and shows that it is at a critical moment in his life.

Golden Entertainment Dishibition 12 months EPS (GAAP)
Golden Entertainment Dishibition 12 months EPS (GAAP)

In the first quarter, Golden Entertainment reported a BPA at $ 0.09, against $ 1.37 in the same quarter last year. This impression has missed analysts’ estimates, but we care more about the growth of long -term BPA than short -term movements. Over the next 12 months, Wall Street expects the Golden Entertainment BPA by $ 0.39 to increase by 110%.

We had trouble finding many positive points in these results. His EPS has missed significantly and his income did not reach the estimates of Wall Street. Overall, it was a lower neighborhood. The action remained stable at $ 25.90 immediately after reports.

The latest report on the results of Golden Entertainment disappointed. A quarter does not define the quality of a company, so let’s explore if action is a purchase at the current price. What happened during the last quarter is important, but not as much as the quality and evaluation of the company in the longer term, when they decide to invest in this stock. We cover this in our usable search report that you can read here, it’s free.

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