Full House Resorts, Inc. (FLL) reports second quarter loss, shortfall revenue estimates

Full House Resorts, Inc. (FLL) reported a quarterly loss of $0.16 per share versus the Zacks Consensus Estimate of a loss of $0.04. For comparison, a year earlier the loss was $0.13 per share. These numbers have been adjusted for one-off items.

This quarterly report presented an earnings surprise of -300%. A quarter ago, it was expected that this company would post a loss of $0.19 per share when it actually produced a loss of $0.33, delivering a surprise of -73.68%.

The company has failed to beat consensus EPS estimates over the last four quarters.

Full House Resorts, Inc., which belongs to the Zacks Gaming industry, posted revenues of $59.38 million for the quarter ended June 2023, missing the Zacks Consensus Estimate by 4.22%. For comparison, revenues from the previous year amounted to $44.38 million. Over the last four quarters, the company has topped consensus revenue estimates only once.

The sustainability of the immediate share price movement based on the recently-released numbers and future earnings expectations will largely depend on management’s commentary on the earnings call.

Stock of Full House Resorts, Inc. have lost about 18% since the beginning of the year compared to the S&P 500 index’s gain of 17.7%.

What’s next for Full House Resorts, Inc.

Although Full House Resorts, Inc. has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no simple answers to this key question, but one reliable measure that can help investors address this issue is the company’s earnings prospects. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Full House Resorts, Inc.’s estimate revision trend ahead of earnings release. is unfavorable. While the magnitude and direction of estimate revisions may change following the company’s just-released earnings report, the current status translates into the stock’s Zacks Rank #4 (Sell). Therefore, it can be expected that the company’s shares will underperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the next quarters and the current fiscal year change in the coming days. The current consensus EPS estimate is -$0.01 on revenue of $67.65M for the coming quarter and -$0.43 on revenue of $248.9M for the current fiscal year.

Investors should be aware that the outlook for the industry may also have a significant impact on share prices. In terms of the Zacks Industry Rank, Gaming is currently in the top 30% of over 250 Zacks industries. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One more company in the same industry, Elys Game Technology, Corp. (ELYS), has not yet reported results for the quarter ended June 2023.

The company is expected to report quarterly loss of $0.06 per share in the upcoming report, representing a year-over-year change of +57.1%. The consensus EPS estimate for the quarter has not changed over the last 30 days.

Elys Game Technology, Corp. revenues are expected to be will amount to USD 11.88 million, which means an increase of 14.8% compared to the same quarter last year.

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