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Factors Setting the Tone for MGM Resorts' (MGM) Q4 Earnings

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MGM Resorts International (MGM - Free Report) is scheduled to report fourth-quarter 2019 results on Feb 12. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 6.9%.

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 24 cents, indicating an improvement of 71.4% from the year-ago quarter figure. Over the past seven days, the company’s earnings estimates have been revised downward by a penny. For quarterly revenues, the consensus mark is pegged at $3,208 million, suggesting growth of 5.4% from the prior-year reported figure.
 
Factors Likely to Impact Q4 Results

Strong performance of both China and domestic operations is likely to have positively impacted the company’s fourth-quarter performance. Further, the consensus mark for revenues from operations in China stands at $761 million, indicating an improvement of 10.8% from the year-ago quarter. Notably, robust convention and room rate are likely to get reflected in the fourth-quarter results.

Moreover, the company’s Las Vegas operations is likely to have benefited from robust performance of MGM Grand Las Vegas, Mandalay Bay and Park MGM. Moreover, the consensus mark for revenues from MGM Grand Las Vegas, Mandalay Bay and Park MGM is pegged at $290 million, $226 million and $95 million, indicating growth of 3.2%, 0.9% and 50.8%, year over year, respectively.

The company’s Las Vegas operation is likely to have gained from improving economic scenario and increased tourism numbers. Meanwhile, MGM Resorts has been consistently making important investments to make the most of opportunities. Moreover, the company’s fourth-quarter results are likely to reflect its solid business model and extensive non-gaming revenues.

MGM Resorts International Price and EPS Surprise

What Does the Zacks Model Say

Our proven model does not 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. 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 #2 and an Earnings ESP of -6.87%.

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 deliver an earnings beat in fourth-quarter 2019.

Mattel, Inc. (MAT - Free Report) has an Earnings ESP of +850.00% and a Zacks Rank #3.

Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #3.

Melco Resorts & Entertainment Limited (MLCO - Free Report) has an Earnings ESP of +11.34% and a Zacks Rank #3.

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