Century Casinos, Inc. (NASDAQ:CNTY) Q3 Earnings Overview

• Earnings per Share (EPS) fell short of estimates, reporting at -$0.26 compared to the expected -$0.24.
• Revenue slightly surpassed expectations, coming in at $155.7 million against an estimate of $155.5 million.
• The company faces financial challenges, highlighted by a negative price-to-earnings (P/E) ratio of -1.53 and a high debt-to-equity ratio of 17.96.

Century Casinos, Inc. (NASDAQ:CNTY) is a gaming company that operates casinos and racetracks across North America and Europe. On November 4, 2024, CNTY reported its Q3 earnings, revealing an earnings per share (EPS) of -$0.26, which fell short of the estimated EPS of -$0.24. Despite this, the company generated a revenue of approximately $155.7 million, slightly surpassing the estimated revenue of $155.5 million.

During the earnings call, Co-CEOs Peter Hoetzinger and Erwin Haitzmann discussed the company's financial performance. Analysts like Jordan Bender from Citizens JMP and Jeffrey Stantial from Stifel Financial Corp. attended the call. The reported EPS of -$0.26 was better than the Zacks Consensus Estimate of a loss of $0.28 per share, showing improvement from the previous year's loss of $0.47 per share.

CNTY's financial metrics reveal some challenges. The company has a negative price-to-earnings (P/E) ratio of approximately -1.53, indicating ongoing losses. However, its price-to-sales ratio is 0.20, suggesting the stock might be undervalued based on sales. The enterprise value to sales ratio is 1.74, providing a perspective on the company's valuation relative to its revenue.

The enterprise value to operating cash flow ratio is significantly negative at -203.81, highlighting difficulties in generating cash flow from operations. Additionally, the earnings yield is negative at -65.27%, underscoring the company's financial struggles. Despite these challenges, CNTY maintains a current ratio of 1.79, indicating sufficient liquidity to cover short-term liabilities.

A notable concern is CNTY's high debt-to-equity ratio of 17.96, reflecting a heavy reliance on debt financing. This could pose risks if the company faces difficulties in meeting its debt obligations. However, the company's ability to slightly exceed revenue expectations suggests potential for future growth if financial challenges are addressed.