US stock futures edge lower after S&P 500 hits record high; PCE data in focus
On Tuesday, Citizens JMP adjusted its outlook on Century Casinos (NASDAQ:CNTY) by reducing the price target to $3 from the previous $4, while maintaining a Market Outperform rating. The adjustment follows Century Casinos’ first-quarter financial performance, which fell short of market expectations. The company reported $130 million in revenue for the first quarter of 2025, which is a 7% decrease compared to the consensus. Additionally, its EBITDA also dropped by 7%, coming in at $20 million. According to InvestingPro data, the company’s financial health score is currently rated as WEAK, with trailing twelve-month revenue of $570.35 million.
The shortfall in Century Casinos’ earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) was attributed to several factors. Adverse weather conditions reportedly affected the company’s diverse portfolio of assets. Moreover, the quarter had one fewer day due to the absence of a leap day and the loss of high-margin sports betting skin revenue in Colorado contributed to the downturn. The company’s performance was also impacted by challenges at the lower end of its customer database, with property-by-property analysis showing continued consumer headwinds in that segment.
Despite the overall decline, there were some positive developments in the first quarter. The company experienced a solid performance at its Caruthersville property, which has been a bright spot with its attractive margin profile. This property is expected to provide a boost to the company’s cash flow generation in the long term. Furthermore, Century Casinos’ operations in Canada and Poland met the firm’s EBITDAR expectations, providing some stability to its international market presence.
The revised price target reflects the mixed results and challenges faced by the company in the regional gaming space during the first quarter of 2025. Century Casinos’ efforts to navigate through consumer headwinds and weather-related disruptions indicate a continued focus on strategic growth and operational efficiency.
In other recent news, Century Casinos reported a significant miss in its first-quarter 2025 earnings, revealing an earnings per share (EPS) of -0.67, which was below the anticipated -0.45. The company’s revenue also fell short, reaching $130.4 million against the forecast of $141.59 million. Factors such as adverse weather conditions and a leap year effect were cited as impacting the quarter’s results. Despite these challenges, Century Casinos noted positive trends in March and April, with EBITDAR showing growth of 8% and 5% year-over-year, respectively. Analyst firm Macquarie maintained an Outperform rating on Century Casinos but lowered the price target from $5.00 to $4.00, citing the company’s repeated earnings misses but acknowledging potential upside due to improving trends. The company has revised its 2025 EBITDAR forecast to approximately $110-120 million, down from previous projections. Century Casinos is focusing on operational efficiency, with no significant capital expenditures planned for 2025 and aims to reduce its net debt to EBITDA ratio by year-end. The potential sale of Polish operations and opportunistic stock buybacks are also under consideration as part of its strategic initiatives.
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