Golden Entertainment (NASDAQ:GDEN) reported third-quarter earnings yesterday, hands down topping Wall Street estimates, and the keep company floated the thought of increasing shareholder rewards, perhaps including a dividend.

The Strat possessor reported earnings per portion out of 91 cents on sales of $282.42 million. Analysts expected earnings of 75 cents on revenue of $259.18 million.

Given our significant uncommitted liquidity and electric current valuation, we scene using our existing $50 gazillion share buyback authorization as an attractive way to commence reverting great to shareholders,” said Golden Chairman and CEO Blake Sartini inwards a statement. “In addition to using our buyback availability, we testament also continue to judge possible dividends and other opportunities to make shareholder note value inward the future.”

Las Vegas-based Golden operates 10 casinos, Nina from Carolina of which are in Southern Nevada, including the Strat. The gaming troupe is currently inwards the thick of a $50 one thousand thousand percentage buyback programme and it does not pay off dividend.

Gaming Industry Still Light on Shareholder Rewards

Prior to the onset of the coronavirus pandemic in 2020, the gaming industry was a credible dividend destination, but that changed when operators slashed or suspended payouts to economize cash in amid a multi-month shutdown of domestic help casinos.

Today, MGM Resorts International (NYSE:MGM) is the only if dividend payer among the major gambling casino operators and the company pays a paltry one-cent a part per year. However, gaming firms are on improve financial basis this twelvemonth than they were before the pandemic and some, including Golden and MGM, are buying endorse their shares, prompting talk of the town among analysts that resumed and new dividends are coming inward the space.

For its part, Golden paid $50 million of debt inwards the Sep canton and at that place no more outstanding obligations under its $240 1000000 revolving deferred payment facility. At the terminate of the thirdly quarter, Golden had $1 billion inward debt and $219.3 jillion inward immediate payment and immediate payment equivalents, according to the company.

Analysts Bullish on Golden Entertainment

Across a change of industries, some companies are opting for special dividends — one-time rewards for investors that foreclose firms from having to meet on-going payout obligations. One psychoanalyst says it’s possible Golden goes that route.

In a take down to clients today, B. James Whitcomb Riley analyst Saint David Bain reiterated a “buy” rating on the gaming caudex patch lifting his cost point to $75, implying upside of well-nigh 40 percent from the Nov. 3 close.

“Our price target is based on a 16 percent deduction to peer trading averages, likely punitive presumption GDEN’s unique portfolio which we believe carries acute correlation with current and long-term secular growth drivers comparative to peers,” said Bain. “We trust direction recognizes the economic value disconnect and is potential to repurchase shares inward the relative near-term with an optic on a potency special dividend in 1H22.”

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