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MGM Resorts Q3 Earnings Miss Estimates on Weak Las Vegas Results
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Key Takeaways
MGM reported a third-quarter loss of 11 cents per share, against earnings estimates of 15 cents.
Las Vegas revenues fell 2% as lower room rates pressured profitability.
MGM China hit record quarterly revenues, while MGM Digital narrowed its losses.
MGM Resorts International (MGM - Free Report) reported third-quarter 2026 results, with earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis, the top and bottom lines declined, with adjusted earnings swinging to a loss from a profit in the prior-year quarter.
MGM Resorts’ results were affected by lower room rates at Las Vegas Strip Resorts and reduced profitability at Regional Operations. However, record quarterly revenues and market share at MGM China, along with revenue growth at MGM Digital, provided some support. MGM China achieved a record quarterly market share of 17.1%.
MGM's Q3 Earnings & Revenue Details
MGM Resorts reported an adjusted loss per share of 11 cents, in contrast to the Zacks Consensus Estimate of earnings of 15 cents by 173.3%. The figure compared unfavorably with adjusted earnings of 24 cents per share reported in the prior-year quarter.
MGM Resorts International Price, Consensus and EPS Surprise
Quarterly revenues of $4.21 billion missed the consensus mark of $4.25 billion by 1%. The top line declined 0.9% year over year. Consolidated adjusted EBITDA decreased 20.4% to $403 million from $506 million in the year-ago quarter.
MGM Resorts' Las Vegas Results Face Pressure
Las Vegas Strip Resorts revenues decreased 2% year over year to $1.95 billion. Segment adjusted EBITDAR declined 12% to $531 million from $601 million. The corresponding margin contracted approximately 300 basis points to 27.2%. Management attributed the weakness primarily to lower room rates during the quarter.
Casino revenues increased 8% to $488 million as table games win climbed 17% to $363 million. Table games win percentage expanded to 25.3% from 22.6%, while slot win increased 2% to $582 million. However, room revenues declined 6% to $622 million. Occupancy remained unchanged at 89%, while average daily rate and revenue per available room decreased 8% to $218 and $193, respectively. Management noted a favorable rebound in October.
MGM's Regional Operations Remain Challenged
Regional Operations revenues declined 8% year over year to $883 million, reflecting the disposition of MGM Northfield Park in April 2026. On a same-store basis, revenues increased 1% to $883 million from $873 million in the prior-year quarter.
Segment adjusted EBITDAR fell 18% to $243 million from $296 million. Same-store EBITDAR declined 7% to $243 million, while the corresponding margin contracted approximately 225 basis points to 27.5%. Casino revenues decreased 10% to $626 million as slot win fell 11% to $629 million. Table games win declined 2% to $200 million, while table games win percentage decreased to 19.1% from 19.4%.
MGM Resorts' China Revenues Reach Record High
MGM China revenues increased 5% year over year to $1.14 billion, reaching a quarterly record. Casino revenues rose 4% to $981 million despite a 10% decline in main-floor table games, which dropped to $3.68 billion. Table games win increased 1% to $1.02 billion, while the win percentage improved to 27.7% from 24.7%.
Segment adjusted EBITDAR declined 7% to $264 million from $284 million, and margin contracted approximately 296 basis points to 23.2%. Results were pressured by a $22 million year-over-year increase in intercompany branding license fees, which reached $41 million. Despite profitability pressure, the segment's record market share reflected its strong competitive position in Macau.
MGM's Digital Business Narrows Losses
MGM Digital revenues increased 6% year over year to $184 million from $174 million. The segment reported an adjusted EBITDAR loss of $4 million compared with a loss of $23 million in the prior-year quarter, indicating a substantial improvement in operating profitability.
MGM Digital comprises LeoVegas and other consolidated interactive gaming subsidiaries. Separately, MGM's unconsolidated BetMGM North America venture contributed $26.7 million in operating income compared with $23.7 million a year earlier. Distributions and branding license fees from the venture to MGM Resorts totaled $34 million during the quarter.
MGM Resorts' Balance Sheet and Capital Plans
MGM Resorts ended the third quarter with cash and cash equivalents of $2.40 billion, up from $2.06 billion at the end of 2025. Long-term debt declined to $5.67 billion from $6.23 billion, while total stockholders' equity increased to $3.37 billion from $3.25 billion.
Management highlighted an amended voting agreement designed to support value-creating share repurchases. The company has repurchased nearly half of its outstanding shares over the past five years, reflecting its continued focus on shareholder returns.
MGM Resorts also reiterated the long-term growth priorities, including its digital portfolio and MGM Osaka development. Management views the Japan project as an important contributor to growth, alongside its existing integrated resort and digital gaming businesses.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported third-quarter 2026 earnings of $2.45 per share, surpassing the Zacks Consensus Estimate of $2.36 by 3.8%. Earnings increased 16.1% from $2.11 per share in the year-ago quarter.
Hilton’s total revenues of $3.33 billion missed the consensus mark of $3.39 billion by 1.8% but increased 6.6% year over year. Results benefited from higher system-wide RevPAR, improved occupancy and average daily rates, along with growth in management and franchise fees. Adjusted EBITDA rose 8.4% year over year to $1.06 billion. Hilton raised its full-year RevPAR growth expectation to 4-4.5% from 3-3.5% previously.
Hasbro, Inc. (HAS - Free Report) reported third-quarter 2026 adjusted earnings of $2.90 per share, surpassing the Zacks Consensus Estimate of $1.86 by 55.9%. Adjusted earnings increased 72.6% year over year.
Hasbro’s net revenues of $1.6 billion topped the consensus estimate of $1.47 billion by 8.6% and increased 15% year over year. Results benefited from strong performance at Wizards of the Coast, led by Magic: The Gathering, along with growth in Consumer Products and Entertainment. Productivity improvements and approximately $55 million in tariff refunds also supported profitability. Hasbro raised its 2026 revenue growth expectation to 7-9% from 5-7% previously.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported third-quarter 2026 adjusted earnings of $6.57 per share, surpassing the Zacks Consensus Estimate of $6.38 by 3%. Earnings increased 14.3% from $5.75 per share in the year-ago quarter.
Royal Caribbean’s total revenues of $5.59 billion exceeded the consensus mark of $5.58 billion by 0.1% and increased 8.8% year over year. Results benefited from strong close-in demand, higher passenger ticket revenues and increased onboard spending. Occupancy stood at 112.4%, while adjusted EBITDA rose 10.7% year over year to $2.54 billion. The company raised its full-year 2026 adjusted earnings guidance to $17.85-$17.95 per share.
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MGM Resorts Q3 Earnings Miss Estimates on Weak Las Vegas Results
Key Takeaways
MGM Resorts International (MGM - Free Report) reported third-quarter 2026 results, with earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis, the top and bottom lines declined, with adjusted earnings swinging to a loss from a profit in the prior-year quarter.
MGM Resorts’ results were affected by lower room rates at Las Vegas Strip Resorts and reduced profitability at Regional Operations. However, record quarterly revenues and market share at MGM China, along with revenue growth at MGM Digital, provided some support. MGM China achieved a record quarterly market share of 17.1%.
MGM's Q3 Earnings & Revenue Details
MGM Resorts reported an adjusted loss per share of 11 cents, in contrast to the Zacks Consensus Estimate of earnings of 15 cents by 173.3%. The figure compared unfavorably with adjusted earnings of 24 cents per share reported in the prior-year quarter.
MGM Resorts International Price, Consensus and EPS Surprise
MGM Resorts International price-consensus-eps-surprise-chart | MGM Resorts International Quote
Quarterly revenues of $4.21 billion missed the consensus mark of $4.25 billion by 1%. The top line declined 0.9% year over year. Consolidated adjusted EBITDA decreased 20.4% to $403 million from $506 million in the year-ago quarter.
MGM Resorts' Las Vegas Results Face Pressure
Las Vegas Strip Resorts revenues decreased 2% year over year to $1.95 billion. Segment adjusted EBITDAR declined 12% to $531 million from $601 million. The corresponding margin contracted approximately 300 basis points to 27.2%. Management attributed the weakness primarily to lower room rates during the quarter.
Casino revenues increased 8% to $488 million as table games win climbed 17% to $363 million. Table games win percentage expanded to 25.3% from 22.6%, while slot win increased 2% to $582 million. However, room revenues declined 6% to $622 million. Occupancy remained unchanged at 89%, while average daily rate and revenue per available room decreased 8% to $218 and $193, respectively. Management noted a favorable rebound in October.
MGM's Regional Operations Remain Challenged
Regional Operations revenues declined 8% year over year to $883 million, reflecting the disposition of MGM Northfield Park in April 2026. On a same-store basis, revenues increased 1% to $883 million from $873 million in the prior-year quarter.
Segment adjusted EBITDAR fell 18% to $243 million from $296 million. Same-store EBITDAR declined 7% to $243 million, while the corresponding margin contracted approximately 225 basis points to 27.5%. Casino revenues decreased 10% to $626 million as slot win fell 11% to $629 million. Table games win declined 2% to $200 million, while table games win percentage decreased to 19.1% from 19.4%.
MGM Resorts' China Revenues Reach Record High
MGM China revenues increased 5% year over year to $1.14 billion, reaching a quarterly record. Casino revenues rose 4% to $981 million despite a 10% decline in main-floor table games, which dropped to $3.68 billion. Table games win increased 1% to $1.02 billion, while the win percentage improved to 27.7% from 24.7%.
Segment adjusted EBITDAR declined 7% to $264 million from $284 million, and margin contracted approximately 296 basis points to 23.2%. Results were pressured by a $22 million year-over-year increase in intercompany branding license fees, which reached $41 million. Despite profitability pressure, the segment's record market share reflected its strong competitive position in Macau.
MGM's Digital Business Narrows Losses
MGM Digital revenues increased 6% year over year to $184 million from $174 million. The segment reported an adjusted EBITDAR loss of $4 million compared with a loss of $23 million in the prior-year quarter, indicating a substantial improvement in operating profitability.
MGM Digital comprises LeoVegas and other consolidated interactive gaming subsidiaries. Separately, MGM's unconsolidated BetMGM North America venture contributed $26.7 million in operating income compared with $23.7 million a year earlier. Distributions and branding license fees from the venture to MGM Resorts totaled $34 million during the quarter.
MGM Resorts' Balance Sheet and Capital Plans
MGM Resorts ended the third quarter with cash and cash equivalents of $2.40 billion, up from $2.06 billion at the end of 2025. Long-term debt declined to $5.67 billion from $6.23 billion, while total stockholders' equity increased to $3.37 billion from $3.25 billion.
Management highlighted an amended voting agreement designed to support value-creating share repurchases. The company has repurchased nearly half of its outstanding shares over the past five years, reflecting its continued focus on shareholder returns.
MGM Resorts also reiterated the long-term growth priorities, including its digital portfolio and MGM Osaka development. Management views the Japan project as an important contributor to growth, alongside its existing integrated resort and digital gaming businesses.
MGM’s Zacks Rank & Recent Consumer Discretionary Releases
MGM Resorts currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported third-quarter 2026 earnings of $2.45 per share, surpassing the Zacks Consensus Estimate of $2.36 by 3.8%. Earnings increased 16.1% from $2.11 per share in the year-ago quarter.
Hilton’s total revenues of $3.33 billion missed the consensus mark of $3.39 billion by 1.8% but increased 6.6% year over year. Results benefited from higher system-wide RevPAR, improved occupancy and average daily rates, along with growth in management and franchise fees. Adjusted EBITDA rose 8.4% year over year to $1.06 billion. Hilton raised its full-year RevPAR growth expectation to 4-4.5% from 3-3.5% previously.
Hasbro, Inc. (HAS - Free Report) reported third-quarter 2026 adjusted earnings of $2.90 per share, surpassing the Zacks Consensus Estimate of $1.86 by 55.9%. Adjusted earnings increased 72.6% year over year.
Hasbro’s net revenues of $1.6 billion topped the consensus estimate of $1.47 billion by 8.6% and increased 15% year over year. Results benefited from strong performance at Wizards of the Coast, led by Magic: The Gathering, along with growth in Consumer Products and Entertainment. Productivity improvements and approximately $55 million in tariff refunds also supported profitability. Hasbro raised its 2026 revenue growth expectation to 7-9% from 5-7% previously.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported third-quarter 2026 adjusted earnings of $6.57 per share, surpassing the Zacks Consensus Estimate of $6.38 by 3%. Earnings increased 14.3% from $5.75 per share in the year-ago quarter.
Royal Caribbean’s total revenues of $5.59 billion exceeded the consensus mark of $5.58 billion by 0.1% and increased 8.8% year over year. Results benefited from strong close-in demand, higher passenger ticket revenues and increased onboard spending. Occupancy stood at 112.4%, while adjusted EBITDA rose 10.7% year over year to $2.54 billion. The company raised its full-year 2026 adjusted earnings guidance to $17.85-$17.95 per share.