Shares of Monarch Casino & Resort (MCRI) plummeted 5.17% in intraday trading on Wednesday, despite the company reporting record quarterly financial results for the third quarter of 2025. The unexpected drop highlights a potential disconnect between investor expectations and the company's performance.
Monarch Casino & Resort announced all-time record quarterly net revenue of $142.814 million, up 3.6% year-over-year. Net income increased by 14.4% to $31.576 million, while adjusted EBITDA rose 8.3% to $54.848 million. The company also declared a cash dividend of $0.30 per share, payable on December 15, 2025. Despite these positive results, the market reaction was decidedly negative.
The stock's decline comes as analysts maintain cautious stances on MCRI. Wells Fargo reiterated its Equal-Weight rating on the stock, while Stifel maintained its Hold rating. Interestingly, Stifel raised its price target for Monarch Casino & Resort from $92 to $97, suggesting some optimism about the company's long-term prospects. The contrast between the positive financial results, analyst actions, and the stock's sharp decline indicates that investors may have had even higher expectations or are concerned about factors not immediately apparent in the quarterly report.
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