MGM Resorts International MGM is scheduled to report third-quarter 2024 results on Oct. 30, after the closing bell. In the previous quarter, the company reported an earnings surprise of 30.3%.

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How are Estimates Placed?

The Zacks Consensus Estimate for third-quarter earnings is pegged at 58 cents per share, indicating a decline of 9.4% from 64 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $4.22 billion. The metric suggests an increase of 6.2% from the year-ago quarter’s figure.

MGM Resorts International Price and EPS Surprise

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

Let’s take a look at how things have shaped up in the quarter.

Factors to Note

MGM Resorts’ third-quarter performance is likely to have benefited from strong leisure demand, strategic partnership with Marriott and the Cosmopolitan's integration into the MGM Rewards program. This and the focus on luxury upgrades across MGM Grand and suite upgrades across its Las Vegas portfolio are likely to have attracted high-value travelers and supported average daily rates in the to-be-reported quarter.

Strength in Macau operations is likely to be reflected in the company’s third-quarter top line. The Zacks Consensus Estimate for third-quarter revenues at MGM China is pegged at $943.6 million, indicating a rise of approximately 16% from the prior-year quarter figure.

Solid contributions from rooms, food and beverage, and casino are likely to have driven the company’s third-quarter top line. The Zacks Consensus Estimate for revenues at rooms and food and beverage is pegged at $832 million and $764 million, suggesting a year-over-year increase of 0.6% and 6.4%, respectively. The consensus mark for third-quarter casino revenues is pegged at $2.24 billion, indicating a rise of 9.4% year over year.

Increased focus on sports betting and iGaming is likely to have acted as a tailwind in the to-be-reported quarter. MGM has made substantial investments in its digital product suite, including the Angstrom sports product, single wallet functionality and new sports betting features. The rollout of a single account and wallet feature in Nevada supports an omnichannel approach, allowing BetMGM to integrate digital and physical gaming experiences seamlessly. The development is likely to have strengthened engagement and user retention in the third quarter.

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