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MGM Resorts (MGM) to Report Q3 Earnings: What's in the Cards?
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MGM Resorts International (MGM - Free Report) is scheduled to report third-quarter 2022 results on Nov 2, 2022, after the closing bell. In the previous quarter, the company reported a negative earnings surprise of 87.5%.
How are Estimates Placed?
The Zacks Consensus Estimate for third-quarter earnings is pegged at 22 cents per share, indicating an improvement of 633.3% from 3 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $3,259 million. The metric suggests an increase of 20.4% from the year-ago quarter’s figure.
Let’s take a look at how things have shaped up in the quarter.
Factors to Note
MGM Resorts’ third-quarter performance is likely to have benefited from strong leisure demand and better convention business in the Las Vegas market. During the previous quarter, the company reported solid performance in its regional properties, owing to its premium offerings and strength in gaming spend levels. Also, it reported strong weekend occupancies and an average daily rate. Given a rebound in convention business, increased international flight capacity and a robust event calendar, the momentum is likely to have continued in the third quarter. The Zacks Consensus Estimate for third-quarter revenues at Las Vegas Strip and Regional operations is pegged at $1,970 million and $934 million, suggesting a year-over-year increase of 42.7% and 1%, respectively.
Solid contributions from rooms and food and beverage are likely to have driven the company’s third quarter top-line. The Zacks Consensus Estimate for revenues at rooms and food and beverage is pegged at $744 million and $614 million, suggesting a year-over-year increase of 51.8% and 47.6%, respectively.
Increased focus on BetMGM is expected to have driven incremental earnings between its brick-and-mortar and online channels in the third quarter. During the previous quarter, the company revealed that BetMGM continues to gain market share. In second-quarter 2022, BetMGM rolled out its offerings in Ontario. It also announced a partnership with Carnival cruises to provide onboard ship betting and gaming under the BetMGM brand. As of May 2022, BetMGM achieved a market share of 21% in the U.S. sports betting and the iGaming space. Given the continued development progress and initiatives to improve the interface and customer experience, the momentum is likely to have continued in the third quarter.
However, limited entrance in the Macau region and public health policies are likely to have affected operations in the third quarter. This and the absence of frictionless movement between Macau, Hong Kong and Mainland China is likely to have influenced the pace of recovery in the to-be-reported quarter. The Zacks Consensus Estimate for MGM China is pegged at $213 million, suggesting a year-over-year decline of 26.3%. Increased expenses related to investments in IT and digital are likely to have hurt margins in the third quarter.
What the Zacks Model Unveils
Our proven model does not predict 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.
Earnings ESP: MGM Resorts has an Earnings ESP of -22.14%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat:
RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #1.
Shares of RCI Hospitality have increased 20.1% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +1.55% and a Zacks Rank #1.
Shares of Marriott have declined 2.3% in the past year. MAR’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 18.6%.
Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3.
Shares of Cedar Fair have declined 14.7% in the past year. FUN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 5.3%.
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MGM Resorts (MGM) to Report Q3 Earnings: What's in the Cards?
MGM Resorts International (MGM - Free Report) is scheduled to report third-quarter 2022 results on Nov 2, 2022, after the closing bell. In the previous quarter, the company reported a negative earnings surprise of 87.5%.
How are Estimates Placed?
The Zacks Consensus Estimate for third-quarter earnings is pegged at 22 cents per share, indicating an improvement of 633.3% from 3 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $3,259 million. The metric suggests an increase of 20.4% from the year-ago quarter’s figure.
MGM Resorts International Price and EPS Surprise
MGM Resorts International price-eps-surprise | MGM Resorts International Quote
Let’s take a look at how things have shaped up in the quarter.
Factors to Note
MGM Resorts’ third-quarter performance is likely to have benefited from strong leisure demand and better convention business in the Las Vegas market. During the previous quarter, the company reported solid performance in its regional properties, owing to its premium offerings and strength in gaming spend levels. Also, it reported strong weekend occupancies and an average daily rate. Given a rebound in convention business, increased international flight capacity and a robust event calendar, the momentum is likely to have continued in the third quarter. The Zacks Consensus Estimate for third-quarter revenues at Las Vegas Strip and Regional operations is pegged at $1,970 million and $934 million, suggesting a year-over-year increase of 42.7% and 1%, respectively.
Solid contributions from rooms and food and beverage are likely to have driven the company’s third quarter top-line. The Zacks Consensus Estimate for revenues at rooms and food and beverage is pegged at $744 million and $614 million, suggesting a year-over-year increase of 51.8% and 47.6%, respectively.
Increased focus on BetMGM is expected to have driven incremental earnings between its brick-and-mortar and online channels in the third quarter. During the previous quarter, the company revealed that BetMGM continues to gain market share. In second-quarter 2022, BetMGM rolled out its offerings in Ontario. It also announced a partnership with Carnival cruises to provide onboard ship betting and gaming under the BetMGM brand. As of May 2022, BetMGM achieved a market share of 21% in the U.S. sports betting and the iGaming space. Given the continued development progress and initiatives to improve the interface and customer experience, the momentum is likely to have continued in the third quarter.
However, limited entrance in the Macau region and public health policies are likely to have affected operations in the third quarter. This and the absence of frictionless movement between Macau, Hong Kong and Mainland China is likely to have influenced the pace of recovery in the to-be-reported quarter. The Zacks Consensus Estimate for MGM China is pegged at $213 million, suggesting a year-over-year decline of 26.3%. Increased expenses related to investments in IT and digital are likely to have hurt margins in the third quarter.
What the Zacks Model Unveils
Our proven model does not predict 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.
Earnings ESP: MGM Resorts has an Earnings ESP of -22.14%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat:
RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #1.
Shares of RCI Hospitality have increased 20.1% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +1.55% and a Zacks Rank #1.
Shares of Marriott have declined 2.3% in the past year. MAR’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 18.6%.
Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3.
Shares of Cedar Fair have declined 14.7% in the past year. FUN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 5.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.