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What's in the Offing for MGM Resorts' (MGM) Q3 Earnings?

Zacks Equity Research
·3 min read

MGM Resorts International MGM is scheduled to report third-quarter 2020 results on Oct 29. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 7.9%.

Q3 Estimates

The Zacks Consensus Estimate for third-quarter bottom line is pegged at a loss of $1.07. Notably, it had reported earnings of 31 cents in the prior-year quarter. Over the past 30 days, the company’s earnings estimates have been revised upward by 5 cents. For quarterly revenues, the consensus mark stands at $1,219 million, suggesting a decline of 63.3% from the year-ago reported figure.

Factors to Note

The company’s second-quarter performance is likely to reflect negative impacts of coronavirus-induced shutdowns, dismal visitation and high operating expenses. Although casinos in Macau and domestic markets have resumed operations, the company has been witnessing low visitation.

Dismal performance of MGM China, Las Vegas Strip Resorts and Regional operations may have weighed on the company’s third-quarter performance. The Zacks Consensus Estimate for MGM China and Regional operations’ revenues are pegged at $198 and 438 million, suggesting a year-over-year decline of 73.2% and 53.2%, respectively. Moreover, sharp increase in expenses might get reflected in the company’s to-be-reported quarter’s results. Meanwhile, MGM Resorts has been consistently making important investments to make the most of opportunities.

MGM Resorts International Price and EPS Surprise

MGM Resorts International Price and EPS Surprise
MGM Resorts International Price and EPS Surprise

MGM Resorts International price-eps-surprise | MGM Resorts International Quote

What the Zacks Model Unveils

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 #3 and an Earnings ESP of -9.35%.

Stock With Favorable Combinations

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 this time around.

Electronic Arts Inc. EA has an Earnings ESP of +517.63% and a Zacks Rank #2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Penn National Gaming, Inc. PENN has an Earnings ESP of +17.36% and a Zacks Rank of 3.

PlayAGS, Inc. AGS has an Earnings ESP of +28.80% and a Zacks Rank #3.

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MGM Resorts International (MGM) : Free Stock Analysis Report
Electronic Arts Inc. (EA) : Free Stock Analysis Report
Penn National Gaming, Inc. (PENN) : Free Stock Analysis Report
PlayAGS, Inc. (AGS) : Free Stock Analysis Report
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