How Will MGM Stock React To Its Upcoming Earnings?

Financial Performance - MGM Resorts is expected to report Q2 2025 earnings of $0.55 per share from $4.31 billion in revenue, reflecting an 8% decline in earnings year-over-year and stagnant revenue growth compared to last year's $0.60 per share and $4.33 billion revenue [2] - Over the past twelve months, MGM generated $17 billion in revenue, with operating profits of $1.6 billion and net income of $678 million [3] Market Trends - Historically, MGM stock has declined 70% of the time following earnings announcements, with a median drop of 3.3% and a maximum fall of 13% [2] - Positive one-day post-earnings returns occurred approximately 30% of the time over the last five years, increasing to 33% in the last three years [6] Strategic Focus - MGM is focusing on long-term growth despite short-term challenges, emphasizing organic growth in sports and entertainment, updated pricing strategies, and rigorous cost management [3] - A relatively lower-risk strategy involves identifying correlations between short-term and medium-term returns following earnings to inform trading positions [7] Peer Comparison - The performance of peers can influence MGM's stock reaction post-earnings, with adjustments potentially occurring before the earnings announcements [8]