MGM Resorts International MGM is set to announce fourth-quarter 2023 results on Feb 13, 2024, following the closing bell. The company had previously reported an earnings surprise of 16.4% in the last quarter.
Estimates Analysis
Market estimates project fourth-quarter earnings per share at 66 cents, reflecting a decrease of 4.4% from the 69 cents reported in the same quarter the previous year.
For revenues, the consensus approximates nearly $4.1 billion, signifying a 13.5% increase from the year-ago quarter’s figure.
MGM Resorts International Price and EPS Surprise
The chart represents MGM Resorts International’s price-eps-surprise. For more details, visit the link.
Understanding the Quarter’s Momentum
Key Factors
Increased activity at MGM China and improvements in cross-play between regional operations and Las Vegas are expected to augment fourth-quarter revenues. Furthermore, strong demand for events like the Super Bowl and Formula One, along with enhancements in omnichannel marketing offerings, likely contributed to the company’s performance during this period.
The Zacks Consensus Estimate for fourth-quarter revenues at MGM China stands at $850 million, showing a substantial increase from the $175 million reported in the previous year’s quarter.
The company’s revenues from rooms, food and beverage, and casino are predicted to have surged, likely driven by solid contributions. Additionally, focus on sports betting and iGaming are expected to provide a boost.
However, incremental expenses related to labor, incentive fees, IT and cybersecurity issues, and the Cosmopolitan integration might have impacted the bottom line unfavorably.
Insights from Zacks Model
Our proven model estimates a potential earnings beat for MGM Resorts this time around. A positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increase the likelihood of an earnings beat.
Earnings ESP: MGM Resorts holds an Earnings ESP of +16.27%. Enhance your stock evaluation process with our Earnings ESP Filter.
Zacks Rank: The company currently boasts a Zacks Rank #3.
Other Potential Outperformers
Several other stocks in the Zacks Consumer Discretionary sector also exhibit favorable attributes to potentially surpass earnings estimates. These include:
Six Flags Entertainment Corporation SIX with an Earnings ESP of +21.85% and a Zacks Rank of 2 at present.
Hyatt Hotels Corporation H, carrying an Earnings ESP of +2.67% and a Zacks Rank of 3.
Choice Hotels International, Inc. CHH, owning an Earnings ESP of +1.48% and a Zacks Rank of 3.
Get the latest on upcoming earnings announcements with the Zacks Earnings Calendar.
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Hyatt Hotels Corporation (H) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
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The views and opinions expressed in this article are the author’s and do not necessarily reflect those of Nasdaq, Inc.
