Hospitality and casino entertainment company MGM Resorts (NYSE:MGM) will be reporting earnings tomorrow afternoon. Here’s what to look for.
MGM Resorts missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $4.18 billion, up 5.3% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA and EPS 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 decline 1.9% year on year to $4.29 billion, a reversal from the 21.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.34 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MGM Resorts has missed Wall Street’s revenue estimates four times over the last two years.
Looking at MGM Resorts’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Boyd Gaming delivered year-on-year revenue growth of 9.1%, beating analysts’ expectations by 4%, and VF Corp reported revenues up 1.9%, topping estimates by 1.2%. Boyd Gaming traded down 1.8% following the results while VF Corp was up 1.4%.
Read our full analysis of Boyd Gaming’s results here and VF Corp’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 3.3% on average over the last month. MGM Resorts is up 6.1% during the same time and is heading into earnings with an average analyst price target of $47.92 (compared to the current share price of $34.29).
Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
