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MGM Resorts (MGM) to Post Q3 Earnings: What's in Store?
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MGM Resorts International (MGM - Free Report) is scheduled to report third-quarter 2023 results on Nov 8, 2023, after market close. In the last reported quarter, MGM’s earnings surpassed the Zacks Consensus Estimate by 11.3%.
Trend in Estimate Revision
For third-quarter 2023, the Zacks Consensus Estimate for adjusted EPS decreased to 59 cents per share from 64 cents in the past 30 days. In the prior-year quarter, it incurred adjusted loss of $1.39. The consensus mark for revenues is pegged at $3.87 billion, suggesting an increase of 13.4% from $3.42 billion in the prior-year quarter.
Factors to Note
MGM’s third-quarter performance is likely to have gained from robust MGM China performance, international expansion and solid sports betting and iGaming prospects. An increase in business volume and travel is likely to aid its results.
Our model predicts MGM China quarterly revenues to surge 791.2% year over year to $779.7 million. On the flip side, we suggest Las Vegas Strip and Regional operations’ revenues to decline 12.5% to $2,013.6 million and 16% to $818.6 million, respectively.
Increased focus on sports betting and iGaming is likely to have acted as a tailwind in the to-be-reported quarter. Attributes such as robust player economics and a successful bonus optimization strategy continue to boost MGM. Constant development progress, and initiatives to improve the interface and customer experience are expected to bode well.
However, high costs are likely to have affected its margins in the to-be-reported quarter. Per our model, expenses for rooms, casino, and food and beverage in third-quarter 2023 are likely to rise 28.3%, 33.2% and 1%, respectively, on a year-over-year basis.
Our proven model doesn’t conclusively 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.
Earnings ESP: MGM Resorts has an Earnings ESP of -4.87%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MGM Resorts currently carries a Zacks Rank #3.
Stocks With the Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space, which, according to our model, have the right combination of elements to deliver an earnings beat this time around.
DraftKings Inc. (DKNG - Free Report) has an Earnings ESP of +17.52% and a Zacks Rank of 3.
DKNG’s earnings for the to-be-reported quarter are expected to improve 31%. It reported better-than-expected earnings in three of the four quarters and missed once, the average surprise being 12%.
WYNN’s earnings for the to-be-reported quarter are expected to jump 161.7%. It reported better-than-expected earnings in two of the trailing four quarters, met once and lagged once, the average beat being 83.6%.
PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +650.00% and a Zacks Rank of 2.
AGS reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 105.7%. AGS’ earnings for the to-be-reported quarter are likely to remain flat.
Image: Bigstock
MGM Resorts (MGM) to Post Q3 Earnings: What's in Store?
MGM Resorts International (MGM - Free Report) is scheduled to report third-quarter 2023 results on Nov 8, 2023, after market close. In the last reported quarter, MGM’s earnings surpassed the Zacks Consensus Estimate by 11.3%.
Trend in Estimate Revision
For third-quarter 2023, the Zacks Consensus Estimate for adjusted EPS decreased to 59 cents per share from 64 cents in the past 30 days. In the prior-year quarter, it incurred adjusted loss of $1.39. The consensus mark for revenues is pegged at $3.87 billion, suggesting an increase of 13.4% from $3.42 billion in the prior-year quarter.
Factors to Note
MGM’s third-quarter performance is likely to have gained from robust MGM China performance, international expansion and solid sports betting and iGaming prospects. An increase in business volume and travel is likely to aid its results.
Our model predicts MGM China quarterly revenues to surge 791.2% year over year to $779.7 million. On the flip side, we suggest Las Vegas Strip and Regional operations’ revenues to decline 12.5% to $2,013.6 million and 16% to $818.6 million, respectively.
Increased focus on sports betting and iGaming is likely to have acted as a tailwind in the to-be-reported quarter. Attributes such as robust player economics and a successful bonus optimization strategy continue to boost MGM. Constant development progress, and initiatives to improve the interface and customer experience are expected to bode well.
However, high costs are likely to have affected its margins in the to-be-reported quarter. Per our model, expenses for rooms, casino, and food and beverage in third-quarter 2023 are likely to rise 28.3%, 33.2% and 1%, respectively, on a year-over-year basis.
MGM Resorts International Price and EPS Surprise
MGM Resorts International price-eps-surprise | MGM Resorts International Quote
What Our Model Indicates
Our proven model doesn’t conclusively 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.
Earnings ESP: MGM Resorts has an Earnings ESP of -4.87%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MGM Resorts currently carries a Zacks Rank #3.
Stocks With the Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space, which, according to our model, have the right combination of elements to deliver an earnings beat this time around.
DraftKings Inc. (DKNG - Free Report) has an Earnings ESP of +17.52% and a Zacks Rank of 3.
DKNG’s earnings for the to-be-reported quarter are expected to improve 31%. It reported better-than-expected earnings in three of the four quarters and missed once, the average surprise being 12%.
Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +17.89% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
WYNN’s earnings for the to-be-reported quarter are expected to jump 161.7%. It reported better-than-expected earnings in two of the trailing four quarters, met once and lagged once, the average beat being 83.6%.
PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +650.00% and a Zacks Rank of 2.
AGS reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 105.7%. AGS’ earnings for the to-be-reported quarter are likely to remain flat.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.