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Dismal Visitation to Hurt MGM Resorts' (MGM) Q4 Earnings
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MGM Resorts International (MGM - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 10. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 1.8%.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter bottom line is pegged at a loss of 96 cents. Notably, it had reported earnings of 8 cents in the prior-year quarter. Over the past 30 days, the company’s earnings estimates have been revised downward by 31 cents. The consensus mark for revenues stands at $1,472 million, suggesting a decline of 53.8% from the year-ago reported figure.
Factors to Note
The company’s fourth-quarter performance is likely to reflect negative impacts of temporary closure of certain domestic properties, low visitation in Macau and domestic market on account of the coronavirus pandemic, and high operating expenses. Moreover, travel restrictions might have weighed on the to-be-reported quarter’s performance.
However, robust demand for sports betting and iGaming may have benefited the company’s performance in the quarter to be reported. The company continues to focus on sports betting expansion. In September, sports betting and iGaming market share were approximately 18% in the states in which it operates. The company has also unveiled a streamlined betting experience on Yahoo Sports.
Dismal performance of MGM China, Las Vegas Strip Resorts and Regional operations may have weighed on the company’s fourth-quarter performance. The Zacks Consensus Estimate for Las Vegas Strip, MGM China and Regional operations’ revenues are pegged at $533 million, $213 and 644 million, suggesting year-over-year declines of 63.1%, 70.7% and 28.4%, respectively. Moreover, sharp increase in expenses might get reflected in the company’s to-be-reported quarter’s results. Meanwhile, MGM Resorts has been consistently making important investments to make the most of opportunities.
Our proven model predicts 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.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MGM Resorts has a Zacks Rank #3 and an Earnings ESP of +3.54%.
Other Stocks With Favorable Combination
Here are other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these too have the right combination of elements to deliver an earnings beat this time around.
Mattel, Inc. (MAT - Free Report) has a Zacks Rank #3 and an Earnings ESP of +9.29%.
Guess’, Inc. (GES - Free Report) has a Zacks Rank #3 and an Earnings ESP of +2.91%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
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Dismal Visitation to Hurt MGM Resorts' (MGM) Q4 Earnings
MGM Resorts International (MGM - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 10. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 1.8%.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter bottom line is pegged at a loss of 96 cents. Notably, it had reported earnings of 8 cents in the prior-year quarter. Over the past 30 days, the company’s earnings estimates have been revised downward by 31 cents. The consensus mark for revenues stands at $1,472 million, suggesting a decline of 53.8% from the year-ago reported figure.
Factors to Note
The company’s fourth-quarter performance is likely to reflect negative impacts of temporary closure of certain domestic properties, low visitation in Macau and domestic market on account of the coronavirus pandemic, and high operating expenses. Moreover, travel restrictions might have weighed on the to-be-reported quarter’s performance.
However, robust demand for sports betting and iGaming may have benefited the company’s performance in the quarter to be reported. The company continues to focus on sports betting expansion. In September, sports betting and iGaming market share were approximately 18% in the states in which it operates. The company has also unveiled a streamlined betting experience on Yahoo Sports.
Dismal performance of MGM China, Las Vegas Strip Resorts and Regional operations may have weighed on the company’s fourth-quarter performance. The Zacks Consensus Estimate for Las Vegas Strip, MGM China and Regional operations’ revenues are pegged at $533 million, $213 and 644 million, suggesting year-over-year declines of 63.1%, 70.7% and 28.4%, respectively. Moreover, sharp increase in expenses might get reflected in the company’s to-be-reported quarter’s results. Meanwhile, MGM Resorts has been consistently making important investments to make the most of opportunities.
MGM Resorts International Price and EPS Surprise
MGM Resorts International price-eps-surprise | MGM Resorts International Quote
What the Zacks Model Unveils
Our proven model predicts 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.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MGM Resorts has a Zacks Rank #3 and an Earnings ESP of +3.54%.
Other Stocks With Favorable Combination
Here are other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these too have the right combination of elements to deliver an earnings beat this time around.
Corsair Gaming, Inc. (CRSR - Free Report) has a Zacks Rank #2 and an Earnings ESP of +3.54%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mattel, Inc. (MAT - Free Report) has a Zacks Rank #3 and an Earnings ESP of +9.29%.
Guess’, Inc. (GES - Free Report) has a Zacks Rank #3 and an Earnings ESP of +2.91%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>