MGM Resorts International MGM is scheduled to report first-quarter 2023 results on May 1, after the closing bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 143.1%.
For the first quarter of 2023, the Zacks Consensus Estimate for adjusted earnings per share has increased to 4 cents from a loss of 1 cent in the past 30 days. In the prior-year quarter, the company had reported adjusted earnings per share of 1 cent.
The Zacks Consensus Estimate for revenues is pegged at $3.51 billion, suggesting growth of 23.1% from the year-ago quarter’s figure of $2.85 billion.
Factors to Note
The company’s first-quarter performance is likely to have benefited from an improvement in domestic operations, robust sports betting and pent-up demand, increased travel activity and expansion initiatives. The company has also been benefiting from high domestic casino spending and strong BetMGM operations.
The company is optimistic about BetMGM as it witnessed robust growth in 2022, which established it as the top player in the sports betting business in North America. The company expects net revenues from operations of BetMGM in 2023 to be between $1.8 billion and $2 billion.
MGM Resorts International Price and EPS Surprise
MGM Resorts International price-eps-surprise | MGM Resorts International Quote
For first-quarter 2023, our model predicts, Las Vegas Strip and Regional operations’ revenues to grow 25.7% to $2,090.7 million and 8.4% to $965.8 million, respectively. However, we expect revenues from MGM China to decline 15.2% year over year to $227.5 million.
However, high cost is likely to have negatively impacted the company’s profit in the quarter-to-be reported.
What Our Model Indicates
Our proven model predicts 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: Earnings ESP for MGM Resorts is +248.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported:
Wynn Resorts, Limited WYNN has an Earnings ESP of +111.38% and a Zacks Rank #2.
Shares of Wynn Resorts have surged 54.7% in the past year. WYNN’s earnings beat the estimates in two of the trailing four quarters and missed twice, the average surprise being 0.6%.
Caesars Entertainment, Inc. CZR has an Earnings ESP of +85.29% and a Zacks Rank #3.
Shares of Caesars Entertainment have declined 38.6% in the past year. CZR’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 16.2%.
Hyatt Hotels Corporation H has an Earnings ESP of +56.57% and a Zacks Rank #3.
Shares of Hyatt Hotels have increased 12.9% in the past year. H’s earnings beat estimates in each of the trailing four quarters, the average surprise being 1,380.7%.
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