MGM Resorts (MGM) to Post Q3 Earnings: MGM China to Hold Key
MGM Resorts International MGM is scheduled to report third-quarter 2023 results on Nov 8, 2023, after market close. The company’s performance is likely to have gained from the robust MGM China performance, international expansion, and solid sports betting and iGaming prospects.
MGM China Likely to Drive Growth in Q3
Increased business volume and travel activity at MGM China bode well for the company. Management is optimistic about MGM China’s prospects, backed by strength in premium mass. In second-quarter 2023, it witnessed high contributions from MGM China due to the removal of COVID-19-related travel restrictions and a rise in visitation. The trend is likely to have continued in third-quarter 2023.
Our model predicts MGM China quarterly revenues to surge 791.2% year over year to $779.7 million. We estimate MGM China Casino, Rooms, Food and Beverage as well as Entertainment, Retail and Other revenues to increase 818.7%, 100.7%, 0.7% and 36.8% year over year to $646.1 million, $14.0 million, $116.2 million and $3.4 million, respectively.
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.
Click here to know how the company’s overall third-quarter performance is expected to have been.
MGM Resorts International Price and EPS Surprise
MGM Resorts International price-eps-surprise | MGM Resorts International Quote
Overall Q3 Earnings & Revenue Expectations
The Zacks Consensus Estimate for earnings is currently pegged at 59 cents per share, indicating 142.5% growth year over year. The consensus mark for revenues is pegged at $3.87 billion, suggesting a 13.4% year-over-year improvement.
MGM currently carries a Zacks Rank #2 (Buy).
Stocks With 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 has an Earnings ESP of +17.52% and a Zacks Rank of 3 (Hold).
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 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 (Strong Buy) 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 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.
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Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
PlayAGS, Inc. (AGS) : Free Stock Analysis Report
DraftKings Inc. (DKNG) : Free Stock Analysis Report
