MGM Resorts Earnings: What To Look For From MGM

Petr Huřťák /
2024/02/12 2:00 am EST

Hospitality and casino entertainment company MGM Resorts (NYSE:MGM) will be reporting results tomorrow afternoon. Here's what to look for.

Last quarter MGM Resorts reported revenues of $3.97 billion, up 16.3% year on year, beating analyst revenue expectations by 2%. It was a very strong quarter for the company, with an impressive beat of analysts' Casino revenue estimates and an impressive beat of analysts' earnings estimates.

Is MGM Resorts buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting MGM Resorts's revenue to grow 15.1% year on year to $4.14 billion, slowing down from the 17.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.71 per share.

MGM Resorts Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing six upward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.8%.

Looking at MGM Resorts's peers in the consumer discretionary segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Boyd Gaming delivered top-line growth of 3.4% year on year, beating analyst estimates by 2.7% and Wynn Resorts reported revenues up 83.1% year on year, exceeding estimates by 5.9%. Boyd Gaming traded up 3.8% on the results, Wynn Resorts was up 4.1%.

Read our full analysis of Boyd Gaming's results here and Wynn Resorts's results here.

There has been positive sentiment among investors in the consumer discretionary segment, with the stocks up on average 4.5% over the last month. MGM Resorts is up 10.9% during the same time, and is heading into the earnings with analyst price target of $54.7, compared to share price of $46.8.

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