MGM Resorts to Report Q2 Earnings: What's in Store for the Stock?

MGM Resorts International MGM is scheduled to report second-quarter 2025 results on July 30, after the closing bell. In the previous quarter, the company reported an earnings surprise of 38%.

MGM’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 25.5%.

Trend in Estimate Revision of MGM

The Zacks Consensus Estimate for second-quarter earnings per share (EPS) has increased to 58 cents from 55 cents in the past seven days. However, the projected figure indicates a decline of 32.6% from 86 cents per share reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $4.3 billion, indicating a decline of 0.6% from the prior-year quarter’s figure.

MGM Resorts International Price and EPS Surprise

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

Let us look at how things might have shaped up in the quarter to be reported.

Factors Likely to Shape MGM Resorts’ Quarterly Results

MGM Resorts’ top and bottom lines are expected to have declined in the second quarter due to softer operational trends. The company is likely to have faced pressure from lower casino activity, reduced non-gaming demand and weaker average daily rates. Ongoing inflationary pressures and a tight labor market are also expected to have affected overall performance.

Soft contributions from casino, rooms, and food and beverage might have been reflected in the company’s performance in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues from casino, rooms, and food and beverage is pegged at $2.17 billion, $880 million and $722 million, respectively, compared with $2.21 billion, $899 million and $802 million reported in the prior-year quarter.

Furthermore, elevated operating expenses and wage inflation are likely to have exerted some margin pressure in the quarter under review.

However, sustained digital growth, solid Las Vegas operations and strong group bookings are expected to have supported MGM Resorts’ performance in the second quarter. 

The Zacks Consensus Estimate for second-quarter revenues from Las Vegas operations’ casino and rooms is pegged at $500 million and $775 million, respectively, compared with $485 million and $767 million in the prior-year quarter.

Growth at BetMGM and MGM Digital, along with progress in sports betting and strategic partnerships, is likely to have contributed further. The company’s marketing initiatives and property enhancements are also expected to aid results. 

MGM’s regional properties also appear poised for steady cash flow generation, aided by portfolio enhancements and efficient cost management initiatives. The Zacks Consensus Estimate for second-quarter revenues from regional operations’ casino and rooms is pegged at $702 million and $80 million, respectively, compared with $684 million and $79 million reported in the prior-year quarter

What Our Model Says About MGM Stock

Our proven model does not conclusively predict an earnings beat for MGM Resorts this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that is not the case here.

MGM’s Earnings ESP: MGM Resorts has an Earnings ESP of -2.80%. 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 currently has a Zacks Rank #3 (Hold).

Stocks Poised to Beat on Earnings

Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.

Royal Caribbean Cruises Ltd. RCL has an Earnings ESP of +0.72% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the to-be-reported quarter, Royal Caribbean’s earnings are expected to increase 27.7%. Royal Caribbean’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.7%.

Live Nation Entertainment, Inc. LYV currently has an Earnings ESP of +3.86% and a Zacks Rank of 3.
 
In the to-be-reported quarter, Live Nation’s earnings are expected to remain flat year over year. Live Nation’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 40.8%.

Carnival Corporation & plc CCL currently has an Earnings ESP of +0.68% and a Zacks Rank of 1.
 
In the to-be-reported quarter, Carnival’s earnings are expected to increase 3.2%. Carnival’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 169.9%.

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This article originally published on Zacks Investment Research (zacks.com).

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