Microvast Holdings announces departure of chief financial officer
On Friday, Citizens JMP increased the price target for Golden Entertainment (NASDAQ:GDEN) shares to $37, up from the previous target of $36, while maintaining a Market Outperform rating. Currently trading at $30.83, InvestingPro analysis suggests the stock is slightly undervalued. The adjustment follows Golden Entertainment’s fourth-quarter performance, where the company reported revenues slightly below expectations but achieved an EBITDA that exceeded consensus estimates. With analyst targets ranging from $32 to $40, the stock shows potential upside despite its recent volatility.
Golden Entertainment’s fourth-quarter revenue fell short of projections by 2%, while its EBITDA of $39 million was 1% higher than what analysts had anticipated. This was largely attributed to the company’s Locals segment, which saw an 8% increase compared to consensus estimates. However, the Taverns segment did not perform as well, with newly acquired locations contributing to a 10% shortfall for the quarter due to increased costs. The company maintains a solid financial foundation with a current ratio of 1.11 and an overall "FAIR" financial health score according to InvestingPro metrics. Despite these challenges, analysts are optimistic about the company’s potential to adjust its expenses within the Taverns segment and improve its performance going into the first quarter of 2025.
Throughout 2024, Golden Entertainment faced several obstacles, including a downturn in the lower end of its customer database, adverse weather conditions in Las Vegas, and disruptions from renovations. These factors led to a 4% decline in same-store revenue and a 13% decrease in EBITDA. Nevertheless, the company’s management has recently shifted its tone regarding consumer trends, noting stability from the lower end of the database, which mirrors positive signals from other gaming companies during the fourth-quarter earnings season.
Analysts at Citizens JMP believe that Golden Entertainment is poised to benefit from its growth strategies implemented in previous years. These initiatives are expected to align with the company’s encounter with more favorable year-over-year comparisons. The analyst’s commentary reflects a belief in the company’s ability to navigate past challenges and capitalize on its strategic efforts to foster growth and improve financial performance.
In other recent news, Golden Entertainment Inc. reported its fourth-quarter 2024 earnings, which fell short of analyst expectations. The company’s earnings per share (EPS) were reported at $0.10, missing the forecast of $0.22, while revenue for the quarter was $164.2 million, below the anticipated $168.83 million. Despite these results, the company remains optimistic about its future growth prospects and strategic initiatives, including development opportunities in Las Vegas and improving tavern performance. Additionally, Golden Entertainment repurchased 2.9 million shares, returning $190 million to shareholders, which reflects its commitment to enhancing shareholder value.
The company achieved an EBITDA of $39 million for the quarter and $155 million for the year, contributing to a full-year revenue of $667 million. Golden Entertainment successfully reduced its net leverage to 2.3 times EBITDA, despite a total funded debt of approximately $400 million. The company also completed the divestiture of its Nevada distributed business, which generated over $600 million, strengthening its balance sheet. Looking ahead, Golden Entertainment anticipates organic growth in 2025, with a focus on cost control and operational efficiency. The company is also exploring potential mergers and acquisitions to drive future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.