MGM Resorts International (MGM Quick QuoteMGM - Free Report) is scheduled to report third-quarter 2021 results on Nov 3, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 63.9%.

Q3 Estimates

For the third quarter, the Zacks Consensus Estimate for a loss per share has narrowed down from 9 cents to 4 cents in the past 30 days. The estimates indicate an improvement of 96.3% from a loss of $1.08 per share reported in the year-ago quarter. The consensus mark for revenues stands at $2.41 billion, suggesting growth of 114.3% from the year-ago quarter’s figure of $1.13 billion.

Factors to Note

The company’s third-quarter performance might have benefited from increased visitation in the Las Vegas market and solid prospects of Macau business. Pent-up consumer demand and high domestic casino spend are likely to have contributed to its quarterly performance.  Also, sequential improvement in Las Vegas results and high demand for leisure may have significantly boosted the company’s performance in the to-be-reported quarter. Net revenues at Las Vegas Strip Resorts in the second quarter were $1 billion, up a whopping 566% year over year owing to lifting of operational and capacity restrictions, and increase in travel due to the easing of cross-border restrictions over time. The uptrend is likely to have continued in third-quarter 2021.

The Zacks Consensus Estimate for Las Vegas Strip and Regional operations’ revenues are pegged at $1,089 million and $878 million, suggesting year-over-year improvement of 126.4% and 57.6%, respectively.

Strong digitalization efforts and robust demand for sports betting are likely to get reflected in the to-be-reported quarter’s results. The company has been focused on sports-betting expansion. BetMGM continues to be a leader in iGaming space, with market share reaching 30% in second-quarter 2021. In the second quarter, 15% of BetMGM's fresh players were from MGM and 31% of MGM M life sign-ups came from BetMGM.

The Zacks Consensus Estimate for revenues for MGM China is pegged at $337 million, indicating an improvement of 618.6% year over year. The company anticipates to see MGM China outperforming in third-quarter 2021.

What Our Model Indicates

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.

Earnings ESP: Earnings ESP for MGM Resorts is +348.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently has a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks With Favorable Combination

Here are some other companies in the Zacks Consumer Discretionary sector, which according to our model, also have the right combination of elements to post an earnings beat.

Golden Entertainment, Inc. (GDEN Quick QuoteGDEN - Free Report) has a Zacks Rank #1 and an Earnings ESP of +37.45%.

Accel Entertainment, Inc. (ACEL Quick QuoteACEL - Free Report) has a Zacks Rank #2 and an Earnings ESP of +20.00%.

Choice Hotels International, Inc. (CHH Quick QuoteCHH - Free Report) has a Zacks Rank #2 and an Earnings ESP of +4.04%.