MGM Resorts Set to Release Fourth-Quarter Earnings: What to Expect
MGM Resorts International (MGM) will announce its fourth-quarter 2024 results on February 12, following the closing of the stock market.
For the latest quarterly updates, check out Zacks’ Earnings Calendar.
Quarterly Performance Overview
In its last earnings report, MGM fell short of the Zacks Consensus Estimate, with adjusted earnings and revenues missing by 6.9% and 0.9%, respectively. Nevertheless, both figures improved compared to the same period last year, up 15.6% and 5.3%.
MGM managed to beat earnings in three out of the last four quarters, missing estimates only once, resulting in an average earnings surprise of 26.2%.
Latest Trends in Earnings Estimates
The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) has dropped to 32 cents, down from 35 cents just a week ago. This projection also reflects a significant decrease of 69.8% compared to $1.06 reported in the same quarter last year.
MGM Resorts International Price and EPS Surprise
MGM Resorts International price-eps-surprise | MGM Resorts International Quote
For revenues, estimates indicate a figure near $4.3 billion, representing a 2.1% decline from the same quarter a year ago.
Key Factors Influencing Q4 Results
MGM’s fourth-quarter performance may have benefitted from its pricing strategies and focus on an omnichannel approach. The rebranding of Mandalay Bay’s Delano Tower to W Resort and a partnership with Marriott Bonvoy also likely played a role in driving performance.
Moreover, the introduction of more non-gaming attractions and renovations in Macau could have enhanced MGM’s appeal to premium customers, potentially increasing visitor numbers.
Stable regional performance, supported by a competitive promotional environment and overall economic stability, likely contributed positively, with the Zacks Consensus Estimate for regional operation revenues at $915.5 million, reflecting a 4.8% increase from the previous year.
Additionally, a heightened focus on sports betting and iGaming should serve as a growth driver. The successful launch of the Single App, Single Wallet in Nevada, along with a new gaming license in New York and a partnership with Grupo Globo in Brazil, boosts MGM’s international digital growth.
However, rising costs and lower-than-expected outcomes from the Formula One event might have negatively affected Q4 results.
What Our Analysis Predicts for MGM Stock
Our predictive model suggests that MGM Resorts may achieve an earnings beat this quarter. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 (Hold) raises the likelihood of this outcome.
MGM’s Earnings ESP: MGM Resorts currently holds an Earnings ESP of +38.37%.
MGM’s Zacks Rank: The company has a Zacks Rank #3 at this time.
Other Stocks to Watch
Investors may consider several other stocks within the Zacks Consumer Discretionary sector that are also positioned for potential earnings beats.
Life Time Group Holdings, Inc. (LTH) has an Earnings ESP of +14.29% and currently ranks #1. Analysts expect a 10.5% earnings increase for LTH, which has surpassed earnings estimates in three of the last four quarters with an average surprise of 46.2%.
Trip.com Group Limited (TCOM) has an Earnings ESP of +0.97% and holds a Zacks Rank #1. TCOM has consistently beaten earnings expectations over the last four quarters, averaging a surprise of 42.8%, although a 7.1% decline in earnings is expected this quarter.
Rush Street Interactive, Inc. (RSI) boasts an Earnings ESP of +22.22% and is currently #1. RSI is projected to see an 800% increase in earnings as it has beaten estimates in each of the last four quarters, with an average surprise of 225%.
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MGM Resorts International (MGM): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
