Bally’s (NYSE:BALY) stock is climbing slightly after the company this morning provided higher-than-expected revenue guidance and announced that it had chosen a new CEO.
Bally’s markets equipment used by casino operators and owns 15 casinos in the U.S. Additionally, the company, in a joint venture with Sinclair Broadcasting (NASDAQ:SBGI), owns regional sports networks, and BALY on its own operates a sports betting app that’s available in 18 U.S. states.
Bally’s Top-Line Guidance and BALY Stock
Bally’s estimated that its fourth-quarter revenue was $576.7 million, versus analysts’ average estimate of $573.8 million. For all of this year, the company believes that its top line will come in at $2.5 billion to $2.6 billion. At the midpoint of the guidance range, that equates to $2.55 billion.
Analysts, on average, expected BALY to generate $2.5 billion in sales this year.
Also noteworthy is that the equipment maker reported preliminary Q4 EBITDA, excluding certain items, of $145.8 million.
“As our businesses continue to integrate, we are pleased to achieve record results in both our Casinos & Resorts and International Interactive segments. Our core businesses are generating fantastic cash flows,” said Bally’s incoming CEO, Robeson Reeves, in a statement.
Bally’s, and thus BALY stock, appears to be benefiting from Las Vegas’ mighty revival.
A New CEO
Bally’s also disclosed today that it had tapped Reeves as its new CEO, effective March 31. Currently serving as the president of Bally’s Interactive unit, Reeves was COO of Gamesys which Bally’s acquired in 2021. Gamesys is an “international online gaming operator.”
The company’s current CEO, Lee Fenton, was CEO of Gamesys when it was acquired by Bally’s.
In an indication of why the CEO change was made, Reeves said in a statement accompanying the company’s financial results: “Simply put, our North America Interactive results in 2022 were unacceptable.”
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
