Hospitality and casino entertainment company MGM Resorts (NYSE: MGM) will be reporting earnings this Wednesday after market hours. Here’s what investors should know.
MGM Resorts beat analysts’ revenue expectations last quarter, reporting revenues of $4.45 billion, up 4.2% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
Is MGM Resorts a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting MGM Resorts’s revenue to be flat year on year, slowing from the 1.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. MGM Resorts rarely misses Wall Street’s revenue estimates.
Looking at MGM Resorts’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 4.2%, missing analysts’ expectations by 0.7%, and Boyd Gaming reported flat revenue, in line with consensus estimates. Monarch traded down 5.6% following the results while Boyd Gaming’s stock price was unchanged.
Read our full analysis of Monarch’s results here and Boyd Gaming’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. MGM Resorts is down 7% during the same time and is heading into earnings with an average analyst price target of $49.91 (compared to the current share price of $46.23).
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