MGM Resorts (MGM) to Report Q1 Earnings: What's in Store?

MGM Resorts International MGM is scheduled to report first-quarter 2020 results on Apr 30. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 66.7%.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter loss is pegged at 17 cents. Notably, the company had reported earnings per share of 12 cents in the prior-year quarter. Over the past 30 days, the company’s earnings estimates have been revised downward by 18 cents. For quarterly revenues, the consensus mark is pegged at $2,548 million, suggesting a decline of 19.8% from the prior-year reported figure.

Factors to Note

The company’s domestic operations have been temporarily closed to contain the spread of the coronavirus. Although casinos in Macau properties are now open, the company is witnessing low visitation. It is safe to say that the coronavirus outbreak is likely to have dampened the company’s first-quarter performance.

Notably, the company reported preliminary first-quarter 2020 results. It anticipates Las Vegas Strip Resorts to report revenues of $1.1 billion, a decline of 21% from the prior-year period. Further, the company expects Regional operations revenues of $726 million, down 21% from the year-ago quarter. Revenues from MGM China are likely to witness a sharp decline of 63% to $272 million.

Moreover, the company’s first-quarter results are likely to reflect sharp increase in expenses. The company’s Macau properties have been incurring cash operating expenses, exclusive of rent, interest, variable gaming taxes, corporate expense and expected capital expenditures, of nearly $1.5 million per day, which is considerably higher than the amount being generated from those properties.

MGM Resorts International Price and EPS Surprise

MGM Resorts International Price and EPS Surprise

MGM Resorts International price-eps-surprise | MGM Resorts International Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for MGM Resorts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

MGM Resorts has a Zacks Rank #3 and an Earnings ESP of -223.96%.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat in fourth-quarter 2019.

Mattel, Inc. MAT has an Earnings ESP of +1.66% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

DISH Network Corporation DISH has an Earnings ESP of +6.6% and a Zacks Rank #2, at present.

Discovery, Inc. DISCA currently has an Earnings ESP of +3.6% and a Zacks Rank #3.

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