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It’s been a mostly bullish earnings season for casino stocks with names like MGM Resorts (NYSE:MGM) International and Las Vegas Sands (NYSE:LVS) Corp. having posted solid earnings. But the third time wasn’t a charm for Bally’s Corp.
Bally’s is part of the consumer discretionary sector at a time when investors are trying to figure out the actual state of the consumer. In 2024, consumers continued spending on entertainment, including online and on-premises gambling. However, the data is getting muddier in 2025, so investors are paying close attention to what gaming companies say.
The beleaguered hotel and casino operator reported its sixth straight quarter of missing analysts’ revenue targets. However, the company delivered a surprise profit of 58 cents in earnings per share. Analysts were expecting a loss of 76 cents per share.
That doesn’t seem to matter much to investors. Two days after its report, BALY stock is down just 2% in what could be called volatile trading. The stock may be getting a tailwind from the broader rally, which is fueled by hopes for a resolution of the trade dispute between the United States and China.
Do Investors Believe in the Company’s Turnaround Story?
Bally’s reported revenue of $580.4 million, which was down 5.1% year-over-year (YOY). The bigger problem for investors is that the company is showing lackluster revenue growth over the last two years. About 78% of that revenue came from the company’s casino business, which includes 19 properties in 11 states. That was down 4.2% YOY.
Like many companies in this space, Bally’s has a growing omnichannel business. For example, the company has online sports betting (OSB) licenses for its Bally Bet and Bally Casino (EPA:CASP) in 13 jurisdictions throughout North America.
The company is also growing its international presence. Its Interactive International division is a global iGames operator. Bally’s also has a significant stake in the global lottery management and services business, Intralot S.A.
However, Bally’s is hoping that 2025 will be the year when its growth through acquisition strategy will bear fruit. The company has now completed a series of transactions with The Queen Casino & Entertainment and Standard General. This adds four new complementary Queen casinos. If last year’s numbers are any indication, those casinos could add nearly 50% to Bally’s topline in the current year.
BALY Stock: Investor Sentiment in One Chart
Who needs a casino when BALY’s stock chart delivers all the thrills?
That volatility over the past year may explain why some investors are opting for steadier plays in the hotel and casino sector.
The spike you see was part of the Trump bump, as market participants became optimistic about what a Trump administration would mean for the economy. The choppiness you see since February 2025 reflects the market’s uncertainty.
However, at its current level, BALY stock is trading significantly below its 50-day simple moving average (SMA) price of $14.24. Its relative strength indicator (RSI) is around 37, which suggests the stock is oversold.
The Company Continues to Ghost Analysts
It’s customary for a company to deliver a call with analysts after it posts earnings. However, customary doesn’t mean mandatory.
For the third consecutive quarter, Bally’s opted not to have a call. The company cited its ongoing transaction for the Queen properties as it didn’t field a call in the third quarter.
No reason was given for the cancellation of this call.
This leaves analysts to interpret the company’s results without any commentary aside from what Bally’s issued in its earnings press release. Bally’s is scheduled to host its annual meeting of shareholders on May 15. Perhaps analysts will be able to get more color at that time.
Since the report, the Bally’s analyst forecasts show that Barclays has maintained its Equal Weight rating on the stock while lowering its price target from $14 to $13.