Earnings Preview: MGM Resorts (MGM) Q3 Earnings Expected to Decline

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for MGM Resorts despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - MGM is expected to report quarterly earnings of $0.39 per share, reflecting a year-over-year decrease of 27.8% [3]. - Revenue projections stand at $4.22 billion, indicating a slight increase of 0.9% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 2.61% higher in the last 30 days, suggesting a reassessment by analysts [4]. - However, the Most Accurate Estimate is lower than the consensus, resulting in an Earnings ESP of -9.75%, indicating a bearish outlook [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict earnings deviations, but its predictive power is stronger for positive readings [8][9]. - MGM's current Zacks Rank is 3, complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, MGM exceeded EPS expectations by 36.21%, with three out of the last four quarters showing earnings beats [12][13]. Industry Comparison - In the gaming industry, Electronic Arts is expected to report earnings of $1.27 per share, a year-over-year decline of 40.9%, with revenues projected at $1.86 billion, down 10.4% [17]. - Electronic Arts has a Zacks Rank of 1 but also shows a negative Earnings ESP of -8.84%, making predictions of an earnings beat uncertain [18].