Yahoo Finance Results: MGM Resorts International Beat Earnings Expectations And Analysts Now Have New Forecasts
As you might know, MGM Resorts International (NYSE:MGM) just kicked off its latest first-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 3.7% to hit US$4.4b. MGM Resorts International also reported a statutory profit of US$0.67, which was an impressive 29% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for MGM Resorts International
Taking into account the latest results, the current consensus from MGM Resorts International's 19 analysts is for revenues of US$17.1b in 2024. This would reflect a credible 2.8% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to fall 11% to US$2.53 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$16.8b and earnings per share (EPS) of US$2.26 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice gain to earnings per share expectations following these results.
The consensus price target was unchanged at US$56.25, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on MGM Resorts International, with the most bullish analyst valuing it at US$66.00 and the most bearish at US$46.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that MGM Resorts International's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.7% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.7% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than MGM Resorts International.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards MGM Resorts International following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that MGM Resorts International's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on MGM Resorts International. Long-term earnings power is much more important than next year's profits. We have forecasts for MGM Resorts International going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with MGM Resorts International (at least 1 which is potentially serious) , and understanding these should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
