Hospitality and casino entertainment company MGM Resorts (NYSE: MGM) will be reporting earnings this Wednesday afternoon. Here’s what you need to know.
MGM Resorts beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $4.40 billion, up 1.8% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
Is MGM Resorts a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting MGM Resorts’s revenue to grow 1.4% year on year to $4.24 billion, slowing from the 5.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MGM Resorts has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2% on average.
Looking at MGM Resorts’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Boyd Gaming delivered year-on-year revenue growth of 4.5%, beating analysts’ expectations by 15.7%, and Monarch reported revenues up 3.6%, falling short of estimates by 1.7%. Boyd Gaming traded down 7.3% following the results while Monarch was also down 4%.
Read our full analysis of Boyd Gaming’s results here and Monarch’s results here.
Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. MGM Resorts is down 9.9% during the same time and is heading into earnings with an average analyst price target of $46.38 (compared to the current share price of $32.90).
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