Core Insights - Melco Resorts reported revenue of $1.31 billion for the quarter ended September 2025, reflecting an 11.4% increase year-over-year and a surprise of +1.91% over the Zacks Consensus Estimate of $1.29 billion [1] - The company's EPS was $0.21, significantly higher than the $0.08 reported in the same quarter last year, resulting in a surprise of +90.91% compared to the consensus EPS estimate of $0.11 [1] Financial Performance - Total segment operating revenues for Mocha and Other were $28.6 million, exceeding the estimated $26.26 million but showing a -6.5% change year-over-year [4] - Altira Macau reported total segment operating revenues of $25.6 million, below the estimated $28.67 million, with a -16.1% change compared to the previous year [4] - City of Dreams generated $672.6 million in total segment operating revenues, slightly below the estimated $681.54 million, but showing a +19.3% year-over-year increase [4] - Studio City reported total segment operating revenues of $375.3 million, slightly below the estimated $387.7 million, with a +2.9% change year-over-year [4] - City of Dreams Manila had total segment operating revenues of $110.7 million, exceeding the estimated $105.64 million, but reflecting a -6.9% change year-over-year [4] - City of Dreams Mediterranean and Other reported total segment operating revenues of $85.8 million, surpassing the estimated $74.74 million, with a +33.2% year-over-year increase [4] Adjusted EBITDA - Adjusted EBITDA for Mocha and Other was $5.77 million, exceeding the average estimate of $4.92 million [4] - Studio City reported adjusted EBITDA of $104.67 million, slightly below the average estimate of $104.97 million [4] - City of Dreams Manila's adjusted EBITDA was $41.26 million, surpassing the average estimate of $32.24 million [4] - City of Dreams reported adjusted EBITDA of $206.88 million, exceeding the average estimate of $200.11 million [4] - City of Dreams Mediterranean and Other had adjusted EBITDA of $23.17 million, significantly above the average estimate of $12.94 million [4] - Corporate and Other reported adjusted EBITDA of -$28.46 million, slightly worse than the estimated -$28.5 million [4] Stock Performance - Melco's shares have returned -3.3% over the past month, contrasting with the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Melco Resorts (MLCO) reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and showing an increase from $0.08 per share a year ago, resulting in an earnings surprise of +90.91% [1] - The company achieved revenues of $1.31 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.91% and up from $1.18 billion year-over-year [2] - Melco shares have increased approximately 39.9% year-to-date, outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The future performance of Melco's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $1.3 billion, and for the current fiscal year, it is $0.47 on revenues of $5.15 billion [7] Industry Context - The Gaming industry, to which Melco belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Melco's Total Operating Revenues increased by 114% to $1310 million in 3Q'25, compared to $1175 million in 3Q'24[23] - Gaming revenue increased by 124% to $1061 million in 3Q'25, compared to $944 million in 3Q'24[23] - Non-Gaming revenue increased by 75% to $248 million in 3Q'25, compared to $231 million in 3Q'24[23] - Net Income increased significantly by 3890% to $62 million in 3Q'25, compared to $13 million in 3Q'24[23] - Adjusted Property EBITDA increased by 179% to $380 million in 3Q'25, compared to $323 million in 3Q'24[23] - Adjusted EBITDA increased by 163% to $352 million in 3Q'25, compared to $303 million in 3Q'24[23] Operational Highlights - City of Dreams Sri Lanka officially opened on August 1, 2025, featuring approximately 800 hotel rooms and 118 gaming tables and 250 gaming machines as of the end of third quarter 2025[8, 22] - City of Dreams Macau recorded Adjusted EBITDA of $207 million in 3Q'25[28] - Studio City recorded Adjusted EBITDA of $105 million in 3Q'25[32] - City of Dreams Mediterranean and Other recorded Adjusted EBITDA of $23 million in 3Q'25[45] Liquidity and Capital Management - As of September 30, 2025, Melco Group had total liquidity of $2598 million, including $1607 million in cash and cash equivalents[50] - Approximately $41 billion has been returned to shareholders from 2016 through 2025 YTD in the form of dividends and share repurchases[56, 58]

Core Insights - Melco Resorts & Entertainment Limited reported a total operating revenue of US$1.31 billion for Q3 2025, marking an 11% increase from US$1.18 billion in Q3 2024, driven by improved gaming and non-gaming performance [2][4] - The company's operating income rose to US$184.5 million in Q3 2025 from US$138.6 million in Q3 2024, indicating strong operational efficiency [2][4] - Adjusted Property EBITDA increased to US$380.4 million in Q3 2025, up from US$322.6 million in the same quarter of the previous year, reflecting enhanced profitability [3] Financial Performance - Net income attributable to Melco for Q3 2025 was US$74.7 million, or US$0.19 per ADS, compared to US$27.3 million, or US$0.06 per ADS, in Q3 2024 [4] - The company reported a net loss attributable to noncontrolling interests of US$12.6 million in Q3 2025, down from US$14.6 million in Q3 2024 [4] - Total cash and bank balances as of September 30, 2025, were US$1.61 billion, including US$125.2 million of restricted cash [32] Gaming Operations - Rolling chip volume increased to US$5.58 billion in Q3 2025 from US$3.30 billion in Q3 2024, with a win rate of 3.68% compared to 3.97% in the previous year [7] - Mass market table games drop rose to US$1.66 billion in Q3 2025 from US$1.40 billion in Q3 2024, with a hold percentage of 29.8% [8] - Gaming machine handle for Q3 2025 was US$1.04 billion, up from US$0.94 billion in Q3 2024, maintaining a win rate of 3.2% [8] Non-Gaming Revenue - Total non-gaming revenue at City of Dreams was US$94.8 million in Q3 2025, compared to US$78.7 million in Q3 2024 [9] - Non-gaming revenue at Studio City was US$85.9 million in Q3 2025, slightly down from US$89.3 million in Q3 2024 [12] - Non-gaming revenue at City of Dreams Mediterranean and Other increased to US$30.4 million in Q3 2025 from US$25.0 million in Q3 2024 [28] Regional Performance - In the Philippines, Property EBITDA grew 45% quarter-over-quarter, while in Cyprus, City of Dreams Mediterranean and satellite casinos achieved a 53% year-over-year increase in Property EBITDA [6] - City of Dreams Manila reported total operating revenues of US$110.7 million in Q3 2025, down from US$118.9 million in Q3 2024, with a decrease in both gaming machine and non-gaming operations [20][23] - Studio City saw total operating revenues of US$375.3 million in Q3 2025, compared to US$364.7 million in Q3 2024, with Adjusted EBITDA rising to US$104.7 million [10] Capital Expenditures and Debt Management - Capital expenditures for Q3 2025 were US$67.6 million, focusing on enhancement projects at City of Dreams and Studio City [37] - Total debt at the end of Q3 2025 was US$7.35 billion, with significant repayments made during the quarter [32][34] - Available liquidity, including cash and undrawn revolving credit facilities, was approximately US$2.60 billion as of September 30, 2025 [36]

Group 1 - JetBlue Airways Corp is focusing on expanding its market presence and improving operational efficiency to enhance profitability [1] - Bausch Health Companies Inc is undergoing a strategic transformation aimed at reducing debt and improving its financial health [1] - The Wendy's Co is leveraging digital initiatives and menu innovation to drive sales growth and enhance customer experience [1] Group 2 - Melco Resorts & Entertainment Ltd is experiencing a recovery in its operations as tourism rebounds, leading to increased revenue [1] - The overall market analysis indicates a positive outlook for the travel and hospitality sector as consumer demand rises [1] - Companies in the industry are adapting to changing consumer preferences and investing in technology to stay competitive [1]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Melco Resorts, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Melco Resorts is expected to report quarterly earnings of $0.11 per share, reflecting a year-over-year increase of 37.5% [3]. - Revenues are projected to reach $1.29 billion, representing a 9.4% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 2.86% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Melco is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +9.09% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Melco's current Zacks Rank is 3, suggesting a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Melco exceeded expectations by posting earnings of $0.23 per share against an expected $0.09, resulting in a surprise of +155.56% [13]. - Over the past four quarters, Melco has beaten consensus EPS estimates twice [14]. Industry Comparison - Another player in the gaming industry, Brightstar, is expected to report earnings of $0.21 per share, with a year-over-year change of 0% [18]. - Brightstar's consensus EPS estimate has been revised down by 25% in the last 30 days, leading to a negative Earnings ESP of -2.44% [19].

Core Insights - Melco Resorts & Entertainment Ltd is considered one of the most undervalued stocks in Hong Kong according to analysts [1] - The company has launched the world's first integrated resort hospital in Macau, in partnership with iRad, enhancing the city's medical tourism infrastructure [2] Company Developments - The newly launched hospital will feature advanced MRI and CT facilities, along with services in aesthetic medicine, longevity treatments, and medical concierge [2] - The initiative aims to attract both regional and international visitors, encouraging longer hotel stays and increased spending [2] - Lawrence Ho, Chairman & CEO, emphasized the alignment of this project with the SAR government's economic diversification strategy [2] Analyst Ratings - JP Morgan analyst DS Kim reiterated a Buy rating for Melco Resorts & Entertainment Ltd, while lowering the price target from $12 to $10.5 [3] - The company operates integrated resorts in Asia and Europe, offering a mix of gaming, luxury accommodations, and entertainment options [3]

Group 1 - Melco Resorts (MLCO) has shown a year-to-date return of 35.9%, significantly outperforming the average gain of 5% in the Consumer Discretionary sector [4] - The Zacks Rank for Melco Resorts is currently 1 (Strong Buy), indicating strong analyst sentiment and a positive earnings outlook, with a 122.4% increase in the consensus estimate for full-year earnings over the past three months [3] - The Gaming industry, to which Melco Resorts belongs, has seen an average gain of 15.9% year-to-date, further highlighting MLCO's strong performance relative to its peers [5] Group 2 - The Consumer Discretionary group, which includes Melco Resorts, is currently ranked 8 within the Zacks Sector Rank, which evaluates 16 different groups based on the average Zacks Rank of individual stocks [2] - Another notable stock in the Consumer Discretionary sector is Adtalem Global Education (ATGE), which has a year-to-date return of 56.9% and a Zacks Rank of 2 (Buy) [4][5] - Investors are encouraged to monitor both Melco Resorts and Adtalem Global Education for their potential to maintain solid performance in the Consumer Discretionary sector [6]

Core Viewpoint - UBS reports that Wynn Macau (01128) significantly increased its market share in September, rising approximately 200 basis points month-over-month, contributing to a quarterly increase of 150 basis points in Q3 [1] Company Summaries - Wynn Macau (01128) saw a notable rise in market share, with a month-over-month increase of about 200 basis points and a quarterly increase of 150 basis points [1] - SJM Holdings (00880) experienced a month-over-month market share increase of approximately 50 basis points in September, but a decline of 30 basis points in Q3 [1] - Sands China (01928) and Galaxy Entertainment (00027) reported a month-over-month decline in market share of about 100 basis points and 150 basis points respectively in September, although both saw quarterly increases of approximately 70 basis points and 40 basis points [1] - Melco Resorts (MLCO.US) and MGM China (02282) maintained stable market shares in September, but both experienced quarterly declines of 120 basis points and 100 basis points respectively [1] - Compared to market expectations, the market shares of Galaxy Entertainment and Wynn Macau exceeded expectations, while those of MGM, Sands China, and SJM Holdings fell short [1]

Core Viewpoint - UBS report indicates that Wynn Macau (01128) significantly increased its market share in September, rising approximately 200 basis points month-over-month, contributing to a quarterly increase of 150 basis points in Q3 [1] Group 1: Market Share Changes - Wynn Macau's market share in September rose significantly, leading the market with a 200 basis points increase month-over-month and a 150 basis points increase quarter-over-quarter [1] - The second highest market share increase was observed in SJM Holdings (00880), which saw a month-over-month rise of about 50 basis points in September, but a decline of 30 basis points in Q3 [1] - Sands China (01928) and Galaxy Entertainment (00027) experienced declines in market share in September, with decreases of approximately 100 basis points and 150 basis points, respectively, although both companies saw quarterly increases of about 70 basis points and 40 basis points in Q3 [1] - Melco Resorts (MLCO.US) and MGM China (02282) maintained their market share in September, but both experienced declines of 120 basis points and 100 basis points, respectively, in Q3 [1] Group 2: Market Expectations - Compared to market expectations, the market shares of Galaxy Entertainment and Wynn Macau were higher than anticipated, while those of MGM, Sands China, and SJM Holdings were lower than expected [1]