Golden Nugget Online Gaming (NASDAQ:GNOG) has made great strides lately, as has much of the online gambling, or gaming, market. After turning in a fantastic earnings report recently that featured record-breaking first-quarter performance, the company was up an additional 26.6% yesterday on about half of normal volume. It's given back some of those gains since, likely on profit-taking, but there was still plenty of good news to go around.
GNOG Earnings Report Delivers a Jackpot Win
Golden Nugget Online Gaming delivered a monster win with its first-quarter earnings report. The company detailed that the company brought in revenue of $26.7 million for the quarter, which was up 54.2%. The first quarter of 2020, meanwhile, saw just $17.3 million by comparison.
The company's net income, meanwhile, came in at $69.6 million for the quarter, even while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) posted a loss of $3.5 million. That doesn't quite compare so well against the first quarter of 2020, which featured an adjusted EBITDA of $5.9 million, but given the recent expansion the company has seen, there's likely a reason for the posted loss.
Additionally, the company also looks to build on its string of online successes by turning to the Incubeta digital marketing group to help spur interest in and growth for its online channels. This will open up a range of new promotional options for Golden Nugget, including paid search and YouTube options, as well as coverage via the Playstore. Given that Incubeta has successfully delivered marketing value for firms ranging from Netflix (NASDAQ:NFLX) to Amazon (NASDAQ:AMZN) and beyond, there's likely to be value realized from this move.
Thomas Winter, the company's present, noted that there has been rapid growth in the iGaming market throughout North America, and looks for 2021 to continue that trend. The company expects to be live in six states by the end of this year. Newly-minted partnerships in Colorado and Iowa will help here as well, giving Golden Nugget Online Gaming access to markets in 12 states, accounting for nearly one third, 29%, of the total US population. Golden Nugget Online Gaming has even been nominated for five different awards in the eGaming Review North America Awards, including “Mobile Operator” and “Operator of the Year.”
What Are Financial Analysts Saying About GNOG Stock?
Based on our latest research on the financial analyst community, the Golden Nugget stock symbol looks like a good sign of value ahead.
When analysts started taking the company on back in February, there was just one “buy” rating to the company's credit. That increased to two in April, where it's remained ever since. There may not be much analyst coverage of Golden Nugget Online Gaming as yet, but there's always something to be said for a pure consensus.
The Golden Nugget stock price target, meanwhile, occupies a very tight range, which is to be expected with two analysts involved. The current high of $28 and the current low of $20 fields an average of $24. That low, meanwhile, is comparatively new; it came in just two days ago as Benchmark lowered its price target on the company from $24 to $20. However, Benchmark also reiterated its “buy” rating at the same time, which is a sign of confidence. The other analyst, Jefferies Financial Group, has had a rating of “buy” in on the company since April 13, with that aforementioned high of $28.
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