Hospitality and casino entertainment company MGM Resorts (NYSE: MGM) will be reporting earnings this Wednesday after market hours. Here’s what to expect.
MGM Resorts beat analysts’ revenue expectations last quarter, reporting revenues of $4.45 billion, up 1% year on year. It was a slower quarter for the company, with 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 for active Edge members.
This quarter, the market is expecting MGM Resorts’s revenue to be flat year on year, slowing from the 1.6% 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 Q3 results, giving us a hint as to what we can expect. Boyd Gaming’s revenues decreased 1.4% year on year, missing analysts’ expectations by 1.1%, and Hasbro reported revenues up 15%, topping estimates by 7.9%. Boyd Gaming’s stock price was unchanged after the results while Hasbro was up 15.7%.
Read our full analysis of Boyd Gaming’s results here and Hasbro’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. MGM Resorts is down 10.2% during the same time and is heading into earnings with an average analyst price target of $41.68 (compared to the current share price of $28.62).
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