MGM Resorts (MGM) to Report Q4 Earnings: What's in the Cards?
MGM Resorts International MGM is scheduled to report fourth-quarter 2023 results on Feb 13, 2024, after the closing bell. In the previous quarter, the company reported an earnings surprise of 16.4%.
What Do the Estimates Say?
The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at 66 cents, indicating a deterioration of 4.4% from 69 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $4.1 billion. The metric suggests an increase of 13.5% from the year-ago quarter’s figure.
MGM Resorts International Price and EPS Surprise
MGM Resorts International price-eps-surprise | MGM Resorts International Quote
Let’s take a look at how things have shaped up in the quarter.
Factors to Note
MGM’s fourth-quarter top line is likely to have gained from increased business volume and travel activity at MGM China. Improvements in cross-play between regional operations and Las Vegas, coupled with strong demand anticipations (for events like the Super Bowl and Formula One) and enhancements in omnichannel marketing offerings, are likely to have aided the company’s performance in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter revenues at MGM China is pegged at $850 million compared with $175 million reported in the prior-year quarter.
Solid contributions from rooms, food and beverage and casino are likely to have driven the company’s fourth-quarter top line. The Zacks Consensus Estimate for revenues at rooms and food and beverage is pegged at $915 million and $740 million, suggesting a year-over-year increase of 1.9% and 4.1%, respectively. The consensus mark for fourth-quarter casino revenues is pegged at $1.9 billion, indicating a rise of 18.7% year over year.
Increased focus on sports betting and iGaming is likely to have acted as a tailwind in the to-be-reported quarter. The launch of a multimedia marketing campaign (to support the BetMGM brand in the U.K.) and leveraging the recent acquisition of Push Gaming (to expand market offerings and reach) are likely to have added to the positives.
Incremental expenses related to labor, incentive fees (associated with the implementation agreement in Japan), IT and cybersecurity issues and the Cosmopolitan integration are likely to have hurt the bottom line in the fourth quarter.
What the Zacks Model Unveils
Our proven model predicts a likely 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 +16.27%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3 at present.
Other Stocks Poised to Beat on Earnings
Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.
Six Flags Entertainment Corporation SIX has an Earnings ESP of +21.85% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SIX is expected to register a 15.6% decrease in earnings for the to-be-reported quarter. It reported better-than-expected earnings in one of the trailing four quarters and missed on other three occasions, the average being negative 9.3%.
Hyatt Hotels Corporation H currently has an Earnings ESP of +2.67% and a Zacks Rank of 3.
H’s earnings for the to-be-reported quarter are expected to decrease 85.1%. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, the average surprise being 174.9%.
Choice Hotels International, Inc. CHH currently has an Earnings ESP of +1.48% and a Zacks Rank of 3.
CHH’s earnings for the to-be-reported quarter are expected to increase 7.1%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 5.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Hyatt Hotels Corporation (H) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
Six Flags Entertainment Corporation New (SIX) : Free Stock Analysis Report
