Hospitality and casino entertainment company MGM Resorts (NYSE: MGM) will be reporting results this Wednesday after market hours. Here’s what to expect.
MGM Resorts beat analysts’ revenue expectations last quarter, reporting revenues of $4.61 billion, up 6% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS and EBITDA 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 grow 2.1% year on year, a reversal from the 2.4% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. MGM Resorts rarely misses Wall Street’s revenue estimates.
Looking at MGM Resorts’s peers in the consumer discretionary - casino operator segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 8.9%, beating analysts’ expectations by 5.2%, and PENN Entertainment reported revenues up 6.4%, topping estimates by 1.7%. Monarch traded up 15.9% following the results while PENN Entertainment was also up 16.8%.
Read our full analysis of Monarch’s results here and PENN Entertainment’s results here.
There has been positive sentiment among investors in the consumer discretionary - casino operator segment, with share prices up 12.8% on average over the last month. MGM Resorts is up 13.4% during the same time and is heading into earnings with an average analyst price target of $42.67 (compared to the current share price of $40.41).
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