MGM Resorts Surpasses Q4 Earnings and Revenue Expectations

MGM Stock

MGM Resorts (NYSE:MGM) has reported quarterly earnings of $1.06 per share, surpassing the Zacks Consensus Estimate of $0.67 per share. This marks an improvement from earnings of $0.69 per share reported a year ago, after adjusting for non-recurring items.

This quarterly report reflects an impressive earnings surprise of 58.21%. In the previous quarter, the consensus estimate for MGM was $0.55 per share, but the company exceeded expectations by reporting earnings of $0.64 per share, resulting in a surprise of 16.36%. Over the past four quarters, MGM has consistently beaten consensus EPS estimates.

In terms of revenue, MGM posted $4.38 billion for the quarter ended December 2023, surpassing the Zacks Consensus Estimate by 6.88%. This represents a significant increase from the year-ago revenue of $3.59 billion. MGM has now exceeded consensus revenue estimates for four consecutive quarters.

The stock’s immediate price movement will largely depend on management’s commentary during the earnings call. Despite MGM’s underperformance compared to the broader market this year, investors are keen to know what lies ahead for the stock.

Looking at the earnings outlook, current consensus expectations for the coming quarter(s) will play a crucial role. Although estimate revisions could change following the latest earnings report, the current status indicates a Zacks Rank #3 (Hold) for MGM, suggesting that the stock is expected to perform in line with the market soon.

It will be interesting to observe how estimates for upcoming quarters and the current fiscal year evolve in the coming days. The current consensus EPS estimate for the next quarter is $0.64 on $4.02 billion in revenues, and for the current fiscal year, it is $2.36 on $16.05 billion in revenues.

Investors should also consider the industry outlook, as it can significantly impact stock performance. The Gaming industry, to which MGM belongs, currently ranks in the top 43% of Zacks industries, indicating positive prospects. Research shows that top-ranked industries outperform the bottom-ranked ones by a considerable margin.

Meanwhile, Monarch Casino (NASDAQ:MCRI), another player in the same industry, is yet to report its results for the quarter ended December 2023. Expectations for Monarch Casino’s upcoming report include quarterly earnings of $1.04 per share, representing a year-over-year decline of -8.8%. Revenue is anticipated to be $119.33 million, down 1% from the year-ago quarter.

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