Hospitality and casino entertainment company MGM Resorts (NYSE:MGM) will be reporting results this Wednesday afternoon. Here’s what investors should know.
MGM Resorts met analysts’ revenue expectations last quarter, reporting revenues of $4.28 billion, down 2.4% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
Is MGM Resorts a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting MGM Resorts’s revenue to be flat year on year at $4.32 billion, slowing from the 9.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.55 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 14 analysts). MGM Resorts has missed Wall Street’s revenue estimates twice over the last two years.
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 6.8%, beating analysts’ expectations by 5.4%, and Boyd Gaming reported revenues up 6.9%, topping estimates by 5.4%. Monarch traded up 20.4% following the results while Boyd Gaming was also up 4.1%.
Read our full analysis of Monarch’s results here and Boyd Gaming’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 9.6% on average over the last month. MGM Resorts is up 12.2% during the same time and is heading into earnings with an average analyst price target of $46.50 (compared to the current share price of $38.60).
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