MGM Resorts International’s Quarterly Earnings Preview: What You Need to Know
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With a market cap of $8.4 billion, MGM Resorts International (MGM) is a global gaming and entertainment company with national and international locations. The Las Vegas, Nevada-based company operates through Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital segments.
The company is expected to release its Q1 2025 earnings after the market closes on Wednesday, Apr. 30. Ahead of this event, analysts expect MGM Resorts to post adjusted earnings of $0.54 per share, down a staggering 27% from $0.74 per share reported in the same quarter last year. On a positive note, the company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on another occasion.
For the full fiscal 2025, analysts forecast MGM to report an adjusted EPS of $2.23, marking a 13.9% decline from $2.59 reported in fiscal 2024. However, in fiscal 2026, its earnings are expected to grow 21.5% year-over-year to $2.71 per share.
MGM stock has plunged 33.4% over the past 52 weeks, significantly lagging behind the S&P 500 Index’s ($SPX) 4.4% gain and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 6.4% returns during the same time frame.
MGM stock prices rose 17.5% in the trading session after the release of its better-than-expected Q4 results on Feb. 12. For the quarter, the company’s topline came in at $4.3 billion, representing a marginal decline from the year-ago quarter but still surpassing analyst estimates.
MGM Digital's net revenues grew 15% year-over-year to $140 million, driven by the company’s entry into new markets in the online gaming segment. Additionally, MGM China delivered a record annual performance, with segment adjusted EBITDAR soaring 25% year-over-year, fueled by favorable market dynamics. The company also reported an adjusted EPS of $0.45, topping consensus estimates of $0.32.
Furthermore, analysts' consensus view on MGM is bullish, with a "Strong Buy" rating overall. Among 18 analysts covering the stock, 14 suggest a "Strong Buy," and four recommend a "Hold” rating. Its mean price target of $47.83 represents a 68.1% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.