MGM Resorts Gears Up to Report Q3 Earnings: Here's What to Expect

Core Viewpoint - MGM Resorts International is set to report its third-quarter 2025 results on October 29, with expectations of a decline in earnings per share (EPS) compared to the previous year, despite a slight revenue increase [1][2][8]. Estimate Revision - The Zacks Consensus Estimate for third-quarter EPS has decreased to 37 cents from 41 cents, reflecting a 31.5% decline from 54 cents in the same quarter last year [2]. - Revenue estimates are pegged at approximately $4.2 billion, indicating a 0.8% increase from the prior-year quarter [2]. Factors Influencing Quarterly Results - MGM's performance is expected to benefit from strong international and digital segments, with MGM China being a key growth driver, projected to generate $1.06 billion in revenues compared to $929.5 million in the prior-year quarter [3][4]. - The digital segment, particularly BetMGM, is anticipated to enhance top-line performance through profitable player acquisition and operational efficiency [4]. - Regional operations are expected to maintain strong cash generation, with revenue estimates at $953.7 million, slightly up from $952.1 million in the previous year [5]. Challenges Impacting Profitability - Ongoing room renovations at MGM Grand and softer midweek trends at value-oriented resorts may negatively impact profitability [6]. - Increased marketing and integration expenses related to MGM Digital's global expansion, along with elevated pre-opening costs, could pressure margins [6]. Earnings Prediction Model - The current model does not predict an earnings beat for MGM, as it lacks a positive Earnings ESP despite having a +6.92% Earnings ESP [7][9].