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MGM Resorts to Report Q3 Earnings: What's in the Cards?
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MGM Resorts International (MGM - Free Report) is scheduled to report third-quarter 2024 results on Oct. 30, after the closing bell. In the previous quarter, the company reported an earnings surprise of 30.3%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
How are Estimates Placed?
The Zacks Consensus Estimate for third-quarter earnings is pegged at 58 cents per share, indicating a decline of 9.4% from 64 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $4.22 billion. The metric suggests an increase of 6.2% from the year-ago quarter’s figure.
Let’s take a look at how things have shaped up in the quarter.
Factors to Note
MGM Resorts’ third-quarter performance is likely to have benefited from strong leisure demand, strategic partnership with Marriott and the Cosmopolitan's integration into the MGM Rewards program. This and the focus on luxury upgrades across MGM Grand and suite upgrades across its Las Vegas portfolio are likely to have attracted high-value travelers and supported average daily rates in the to-be-reported quarter.
Strength in Macau operations is likely to be reflected in the company’s third-quarter top line. The Zacks Consensus Estimate for third-quarter revenues at MGM China is pegged at $943.6 million, indicating a rise of approximately 16% from the prior-year quarter figure.
Solid contributions from rooms, food and beverage, and casino are likely to have driven the company’s third-quarter top line. The Zacks Consensus Estimate for revenues at rooms and food and beverage is pegged at $832 million and $764 million, suggesting a year-over-year increase of 0.6% and 6.4%, respectively. The consensus mark for third-quarter casino revenues is pegged at $2.24 billion, indicating a rise of 9.4% year over year.
Increased focus on sports betting and iGaming is likely to have acted as a tailwind in the to-be-reported quarter. MGM has made substantial investments in its digital product suite, including the Angstrom sports product, single wallet functionality and new sports betting features. The rollout of a single account and wallet feature in Nevada supports an omnichannel approach, allowing BetMGM to integrate digital and physical gaming experiences seamlessly. The development is likely to have strengthened engagement and user retention in the third quarter.
However, elevated cost pressures and softness surrounding the Formula One event are likely to have affected the company’s operations in the third quarter.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for MGM Resorts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: MGM Resorts has an Earnings ESP of +6.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some better stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
DKNG is expected to register a 31.2% increase year over year in earnings for the to-be-reported quarter. It reported better-than-expected earnings in two of the trailing four quarters and missed twice, the average surprise being 59.5%.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +5.84% and a Zacks Rank of 3 at present.
CHH is expected to have registered a 5% increase year over year in earnings for the to-be-reported quarter. It reported better-than-expected earnings in two of the trailing four quarters and missed twice, the average surprise being 3.4%.
Marriott International, Inc. (MAR - Free Report) currently has an Earnings ESP of +1.57% and a Zacks Rank of 3.
MAR’s earnings for the to-be-reported quarter are expected to increase 9.5% year over year. It reported better-than-expected earnings in three of the trailing four quarters and missed once, the average surprise being 16.9%.
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MGM Resorts to Report Q3 Earnings: What's in the Cards?
MGM Resorts International (MGM - Free Report) is scheduled to report third-quarter 2024 results on Oct. 30, after the closing bell. In the previous quarter, the company reported an earnings surprise of 30.3%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
How are Estimates Placed?
The Zacks Consensus Estimate for third-quarter earnings is pegged at 58 cents per share, indicating a decline of 9.4% from 64 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $4.22 billion. The metric suggests an increase of 6.2% from the year-ago quarter’s figure.
MGM Resorts International Price and EPS Surprise
MGM Resorts International price-eps-surprise | MGM Resorts International Quote
Let’s take a look at how things have shaped up in the quarter.
Factors to Note
MGM Resorts’ third-quarter performance is likely to have benefited from strong leisure demand, strategic partnership with Marriott and the Cosmopolitan's integration into the MGM Rewards program. This and the focus on luxury upgrades across MGM Grand and suite upgrades across its Las Vegas portfolio are likely to have attracted high-value travelers and supported average daily rates in the to-be-reported quarter.
Strength in Macau operations is likely to be reflected in the company’s third-quarter top line. The Zacks Consensus Estimate for third-quarter revenues at MGM China is pegged at $943.6 million, indicating a rise of approximately 16% from the prior-year quarter figure.
Solid contributions from rooms, food and beverage, and casino are likely to have driven the company’s third-quarter top line. The Zacks Consensus Estimate for revenues at rooms and food and beverage is pegged at $832 million and $764 million, suggesting a year-over-year increase of 0.6% and 6.4%, respectively. The consensus mark for third-quarter casino revenues is pegged at $2.24 billion, indicating a rise of 9.4% year over year.
Increased focus on sports betting and iGaming is likely to have acted as a tailwind in the to-be-reported quarter. MGM has made substantial investments in its digital product suite, including the Angstrom sports product, single wallet functionality and new sports betting features. The rollout of a single account and wallet feature in Nevada supports an omnichannel approach, allowing BetMGM to integrate digital and physical gaming experiences seamlessly. The development is likely to have strengthened engagement and user retention in the third quarter.
However, elevated cost pressures and softness surrounding the Formula One event are likely to have affected the company’s operations in the third quarter.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for MGM Resorts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: MGM Resorts has an Earnings ESP of +6.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some better stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
DraftKings Inc. (DKNG - Free Report) has an Earnings ESP of +36.39% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DKNG is expected to register a 31.2% increase year over year in earnings for the to-be-reported quarter. It reported better-than-expected earnings in two of the trailing four quarters and missed twice, the average surprise being 59.5%.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +5.84% and a Zacks Rank of 3 at present.
CHH is expected to have registered a 5% increase year over year in earnings for the to-be-reported quarter. It reported better-than-expected earnings in two of the trailing four quarters and missed twice, the average surprise being 3.4%.
Marriott International, Inc. (MAR - Free Report) currently has an Earnings ESP of +1.57% and a Zacks Rank of 3.
MAR’s earnings for the to-be-reported quarter are expected to increase 9.5% year over year. It reported better-than-expected earnings in three of the trailing four quarters and missed once, the average surprise being 16.9%.