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MGM Resorts (MGM) Q3 Earnings: China Operations Hold Key
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MGM Resorts International (MGM - Free Report) is scheduled to report third-quarter 2018 results on Oct 30, after the closing bell. In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate.
How are Estimates Faring?
Let’s look at earnings estimate revisions in order to get a clear picture of what analysts are thinking about the company prior to the release. For the quarter under review, the Zacks Consensus Estimate is pegged at 20 cents, down by a penny over the past 30 days. This reflects a decline of more than 39% from 33 cents in the year-ago quarter. Revenues are expected to come in at $2,911 million, up nearly 3% year over year.
Factors at Play
MGM Resorts’ third-quarter revenues are likely to be driven by sharp increase in sales from China operation, which is likely to offset decline at domestic operation. The Zacks Consensus Estimate for revenues from domestic resorts is pegged at $2,130 million, reflecting a 4.7% decline year over year. However, the consensus mark for revenues from China operations is currently pegged at $673 million, up 42.9% on a year-over-year basis.
Meanwhile, the company’s solid business model and extensive non-gaming revenue opportunities will continue boosting its performance in the to-be-reported quarter. Moreover, MGM Resorts utilizes various types of technology to maximize revenues and efficiency in operations. In this context it is worth mentioning that MGM Resorts has an M life Rewards program for its customers at domestic resorts. M life provides access to rewards, privileges and members-only events. Management believes that its continued digital endeavors will facilitate high margins with lesser capital spending.
Recently, MGM Resorts partnered Boyd Gaming to significantly enhance each company's market access and customer base throughout the United States. Under the partnership, both the companies have initiated opportunities to offer online and mobile gaming platforms, including sports betting, casino gaming and poker.
However, higher labor costs and expenses associated with technological initiatives are likely to hurt the company’s earnings and margin in the to-be-reported quarter.
Our proven model does not conclusively show that MGM Resorts is likely to beat earnings estimates in the third quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MGM Resorts has an Earnings ESP of -11.47% and a Zacks Rank #3, which makes surprise prediction difficult.
Stocks to Consider
Here are some companies from the same sector that are poised for an earnings beat this quarter.
Clarus Corporation (CLAR - Free Report) has an Earnings ESP of +6.25% and a Zacks Rank #2.
Acushnet Holdings (GOLF - Free Report) has an Earnings ESP of +28.57% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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MGM Resorts (MGM) Q3 Earnings: China Operations Hold Key
MGM Resorts International (MGM - Free Report) is scheduled to report third-quarter 2018 results on Oct 30, after the closing bell. In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate.
How are Estimates Faring?
Let’s look at earnings estimate revisions in order to get a clear picture of what analysts are thinking about the company prior to the release. For the quarter under review, the Zacks Consensus Estimate is pegged at 20 cents, down by a penny over the past 30 days. This reflects a decline of more than 39% from 33 cents in the year-ago quarter. Revenues are expected to come in at $2,911 million, up nearly 3% year over year.
Factors at Play
MGM Resorts’ third-quarter revenues are likely to be driven by sharp increase in sales from China operation, which is likely to offset decline at domestic operation. The Zacks Consensus Estimate for revenues from domestic resorts is pegged at $2,130 million, reflecting a 4.7% decline year over year. However, the consensus mark for revenues from China operations is currently pegged at $673 million, up 42.9% on a year-over-year basis.
Meanwhile, the company’s solid business model and extensive non-gaming revenue opportunities will continue boosting its performance in the to-be-reported quarter. Moreover, MGM Resorts utilizes various types of technology to maximize revenues and efficiency in operations. In this context it is worth mentioning that MGM Resorts has an M life Rewards program for its customers at domestic resorts. M life provides access to rewards, privileges and members-only events. Management believes that its continued digital endeavors will facilitate high margins with lesser capital spending.
Recently, MGM Resorts partnered Boyd Gaming to significantly enhance each company's market access and customer base throughout the United States. Under the partnership, both the companies have initiated opportunities to offer online and mobile gaming platforms, including sports betting, casino gaming and poker.
However, higher labor costs and expenses associated with technological initiatives are likely to hurt the company’s earnings and margin in the to-be-reported quarter.
MGM Resorts International Price and Consensus
MGM Resorts International Price and Consensus | MGM Resorts International Quote
What Does the Zacks Model Say?
Our proven model does not conclusively show that MGM Resorts is likely to beat earnings estimates in the third quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MGM Resorts has an Earnings ESP of -11.47% and a Zacks Rank #3, which makes surprise prediction difficult.
Stocks to Consider
Here are some companies from the same sector that are poised for an earnings beat this quarter.
MCBC Holdings (MCFT - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Clarus Corporation (CLAR - Free Report) has an Earnings ESP of +6.25% and a Zacks Rank #2.
Acushnet Holdings (GOLF - Free Report) has an Earnings ESP of +28.57% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>