Bally's stock designated as Bear of the Day by Zacks due to declining earnings

From Nasdaq: 2024-12-11 04:00:00

Investors may want to avoid Bally’s stock as it lands a Zacks Rank #5 (Strong Sell) and a Bear of the Day designation due to declining earnings estimate revisions. Despite rising over +20% in 2024, the company is still unprofitable and down 50% in the last three years.

Bally’s reported a weak Q3 with a net loss of $247.86 million or -$1.99 a share, missing estimates. Operating expenses increased by 20% year over year, leading to concerns about the company’s financial performance. Sales of $629.97 million in Q3 also missed estimates by -3%.

Bally’s operates in a challenging market with industry weakness and regulatory scrutiny in the hotel-casino sector. The Zacks Hotels and Motels Industry is in the bottom 23% of Zacks industries, adding to the company’s struggles. Ongoing investigations by the SEC into Bally’s accounting practices further compound the challenges.

EPS estimates for Bally’s have declined significantly for fiscal 2024 and 2025, indicating a lack of confidence in the company’s future profitability. With sales growth projections remaining low for the next two fiscal years, investor sentiment towards Bally’s earnings potential is starting to sour.

Given the accounting probes and declining EPS estimates, investors may be wary of Bally’s stock. The company’s trend of missing earnings expectations and staying below the profitability line raises concerns about its financial health. It may be prudent for investors to consider other investment opportunities.



Read more at Nasdaq: Bear of the Day: Bally’s (BALY)