MGM Resorts International MGM is scheduled to report fourth-quarter 2024 results on Feb. 12, after the closing bell.

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In the last reported quarter, adjusted earnings and revenues missed the Zacks Consensus Estimate by 6.9% and 0.9%, respectively. On a year-over-year basis, both metrics improved 15.6% and 5.3%, respectively.

The company’s earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 26.2%.

Trend in Estimate Revision of MGM

The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) has declined to 32 cents from 35 cents in the past seven days. The projected figure indicates a decline of 69.8% from $1.06 reported in the year-ago quarter.

MGM Resorts International Price and EPS Surprise

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

For revenues, the consensus mark is pegged at nearly $4.3 billion, suggesting a fall of 2.1% from the prior-year quarter’s figure.

Factors Likely to Shape MGM’s Quarterly Results

MGM Resorts' fourth-quarter performance is likely to have benefited from strategic customer pricing initiatives, emphasis on omnichannel strategy, rebranding of Mandalay Bay’s Delano Tower to a W Resort and collaboration with Marriott Bonvoy.

Emphasis on the expansion of cultural non-gaming offerings and the renovation of Macau's villas and conversion of base rooms and co-ties into suites are likely to have boosted MGM’s premium mass market positioning and driven organic visitation in the to-be-reported quarter.

Stable regional performance, driven by a rational promotional landscape and a steady economic environment, is likely to have aided the company’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for fourth-quarter revenues at regional operations is pegged at $915.5 million, indicating a rise of approximately 4.8% from the prior-year quarter figure.

Increased focus on sports betting and iGaming is likely to have acted as a tailwind in the to-be-reported quarter. Additional value is expected on the back of the successful launch of the Single App, Single Wallet feature in Nevada, a commercial gaming license in New York, and expansion of its international digital footprint through a strategic partnership with Grupo Globo in Brazil.

However, elevated cost pressures and softness surrounding the Formula One event are likely to have affected the company’s performance in the fourth quarter.

What Our Model Says About MGM Stock

Our proven model predicts 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.

MGM’s Earnings ESP: MGM Resorts has an Earnings ESP of +38.37%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

MGM’s Zacks Rank: The company has a Zacks Rank #3 at present.

Other Stocks With the Favorable Combination

Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these, too, have the right combination of elements to deliver an earnings beat this time around.

Life Time Group Holdings, Inc. LTH has an Earnings ESP of +14.29% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

LTH is expected to register a 10.5% increase in earnings for the to-be-reported quarter. It reported earnings beats in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.

Trip.com Group Limited TCOM currently has an Earnings ESP of +0.97% and a Zacks Rank of 1.

TCOM reported earnings beats in each of the trailing four quarters, with an average surprise of 42.8%. Its earnings for the to-be-reported quarter are expected to decrease 7.1%.

Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +22.22% and a Zacks Rank of 1.

RSI’s earnings for the to-be-reported quarter are expected to increase 800%. It reported earnings beats in each of the trailing four quarters, the average surprise being 225%.

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MGM Resorts International (MGM) : Free Stock Analysis Report

Trip.com Group Limited Sponsored ADR (TCOM) : Free Stock Analysis Report

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Life Time Group Holdings, Inc. (LTH) : Free Stock Analysis Report

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