MGM Resorts International (NYSE:MGM) is slated to unveil its fourth-quarter 2023 results on February 13, 2024, after the market closes. In the previous quarter, the company surprised with earnings that exceeded expectations by 16.4%.
What Are the Estimates Saying?
Analysts project fourth-quarter earnings per share to be around 66 cents, indicating a decline of 4.4% from the 69 cents reported in the same period last year. As for revenues, the consensus estimate stands at approximately $4.1 billion, reflecting a robust increase of 13.5% from the year-ago quarter.
Let’s delve into the quarter’s dynamics.
Key Factors to Consider
MGM’s fourth-quarter revenue is expected to have benefited from heightened business activity and travel demand at MGM China. The company likely saw improvements in cross-play between its regional operations and Las Vegas, alongside strong anticipation for major events like the Super Bowl and Formula One. Enhancements in omnichannel marketing offerings are also anticipated to have contributed positively to the company’s performance in the upcoming quarter.
The Zacks Consensus Estimate for fourth-quarter revenues at MGM China is projected at $850 million, compared with $175 million reported in the same quarter of the previous year.
Substantial contributions from rooms, food and beverage, and casino segments are expected to have driven MGM’s fourth-quarter revenue. Estimates suggest revenues of $915 million for rooms and $740 million for food and beverage, indicating year-over-year increases of 1.9% and 4.1%, respectively. The consensus projection for fourth-quarter casino revenues is approximately $1.9 billion, marking an 18.7% rise from the previous year.
The company’s increased focus on sports betting and iGaming likely served as a tailwind during the quarter. Initiatives such as the launch of a multimedia marketing campaign to bolster the BetMGM brand in the U.K. and leveraging the recent acquisition of Push Gaming to expand market offerings and reach are expected to have further bolstered its position.
However, incremental expenses related to labor, incentive fees associated with the implementation agreement in Japan, IT and cybersecurity issues, and integration costs related to the Cosmopolitan are expected to have exerted pressure on the bottom line in the fourth quarter.
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