MGM Resorts to Release Q1 2025 Earnings Amidst Mixed Analysts Outlook

MGM Resorts International (MGM), boasting a market cap of $8.4 billion, is a prominent global gaming and entertainment company with numerous locations both nationally and internationally. Headquartered in Las Vegas, Nevada, MGM operates through various segments, including Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital.

Upcoming Earnings Report and Analyst Expectations

The company is set to announce its Q1 2025 earnings after the market closes on Wednesday, April 30. Analysts predict that MGM Resorts will report adjusted earnings of $0.54 per share, indicating a significant decline of 27% from the $0.74 per share reported in the same quarter last year. However, it is worth noting that MGM has exceeded Wall Street’s bottom-line estimates in three out of the past four quarters, with one instance of underperformance.

Fiscal 2025 Expectations and Future Growth

For the full fiscal year 2025, analysts anticipate MGM to report an adjusted EPS of $2.23, representing a 13.9% drop from $2.59 recorded in fiscal 2024. Conversely, fiscal 2026 is projected to show growth, with earnings expected to rise by 21.5% year-over-year to $2.71 per share.

Stock Performance Overview

Over the past 52 weeks, MGM Stock has declined by 33.4%. This performance starkly contrasts with the S&P 500 Index’s gain of 4.4% and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 6.4% returns in the same period.

On February 12, MGM Stock saw a 17.5% increase during the trading session following a better-than-expected Q4 report. The company’s revenue for the quarter was $4.3 billion, slightly down from the prior year but still above analyst expectations.

Growth in Digital Revenue and Market Expansion

MGM Digital reported a 15% year-over-year increase in net revenues, hitting $140 million, primarily driven by the company’s expansion into new online gaming markets. Additionally, MGM China achieved record annual performance, with segment adjusted EBITDAR increasing by 25% year-over-year due to favorable market conditions. The company also posted an adjusted EPS of $0.45, surpassing consensus estimates of $0.32.

Analyst Consensus and Price Target

Analysts maintain a bullish consensus on MGM, assigning a “Strong Buy” rating overall. Among 18 analysts monitoring the Stock, 14 recommend a “Strong Buy,” while four suggest a “Hold.” The average price target is set at $47.83, implying a 68.1% upside from current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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