Core Insights - Corey Sanders, the Chief Operating Officer of MGM Resorts International, will retire after over 30 years of service, remaining in the role until December 31, 2025, and serving as an advisor until December 31, 2026 [1][2] - Bill Hornbuckle, President & CEO of MGM Resorts, highlighted Sanders' significant contributions to the company, including leadership during key acquisitions and property expansions, and emphasized his impact on company culture and employee relations [2] Company Overview - MGM Resorts International is a global gaming and entertainment company listed on the S&P 500, featuring a portfolio of 31 hotel and gaming destinations worldwide, including renowned resort brands [3] - The company operates BetMGM, a joint venture offering sports betting and online gaming in North America, and is expanding its presence in Asia with a resort development in Japan [3] - MGM Resorts is committed to sustainability and community impact, recognized as one of FORTUNE® Magazine's World's Most Admired Companies [3]

Financial Performance & Outlook - BetMGM's 2Q 2025 net revenue reached $692 million, with a year-over-year growth of 36%[14,35] - 2Q 2025 EBITDA was $86 million, marking a $78 million improvement year-over-year[14] - 1H 2025 net revenue totaled $1.35 billion, showing a 35% increase compared to the previous year[14,35] - 1H 2025 EBITDA reached $109 million, a $232 million improvement year-over-year[14,40] - The company projects at least $2.7 billion in net revenue and at least $150 million in EBITDA for the full year 2025[16,43] iGaming - iGaming net revenue for 2Q 2025 was $449 million, up 29% year-over-year[35,46] - iGaming net revenue for 1H 2025 was $891 million, up 28% year-over-year[35] - Player volume in iGaming increased by 38% year-over-year in 1H 2025[20] - Player engagement in iGaming increased by 34% year-over-year in 1H 2025[20] Online Sports - Online sports net revenue for 2Q 2025 was $228 million, a 56% increase year-over-year[35,46] - Online sports net revenue for 1H 2025 was $422 million, a 61% increase year-over-year[35] - The player base for online sports grew by 70% year-over-year in 1H 2025[25]

Group 1 - Caesars Entertainment's shares have declined by 22% over the past year, indicating a history of underperformance [1] - The company's stock value is currently lower than when it was previously rated as a buy [1] - The analysis is based on over fifteen years of experience in making contrarian bets and identifying stock-specific turnaround stories [1]

Economic Overview - Inflation is showing signs of cooling, with the personal consumption expenditure (PCE) index rising only 0.1% month-over-month in April and 2.1% year-over-year, down from 2.3% in March [4][5] - Core PCE, excluding food and energy, also rose 0.1% month-over-month and 2.5% year-over-year, marking the smallest advance since March 2021 [5] - Consumer spending increased by 0.2% month-over-month, while personal income rose by 0.8% in April, indicating economic resilience [5][11] Trade and Tariffs - President Trump's tariffs announced in early April have been put on hold as trade negotiations are ongoing, alleviating concerns about inflation and recession [2][6] - The temporary pause in tariffs and the initiation of trade talks, including a deal with the UK, have boosted market optimism [7] Consumer Discretionary Stocks - Positive sentiment in the economy suggests investing in consumer discretionary stocks is prudent [2][8] - Selected stocks include: - **Interface, Inc. (TILE)**: Expected earnings growth rate of 8.2%, with a Zacks Consensus Estimate improvement of 2.6% over the past 60 days [9] - **Kontoor Brands, Inc. (KTB)**: Expected earnings growth rate of 9.6%, with a Zacks Consensus Estimate improvement of 2.9% over the past 60 days [12] - **GDEV Inc. (GDEV)**: Expected earnings growth rate of 58%, with a Zacks Consensus Estimate improvement of 21.8% over the past 60 days [13] - **Netflix, Inc. (NFLX)**: Expected earnings growth rate of 27.7%, with a Zacks Consensus Estimate improvement of 3% over the past 60 days [15]

Core Insights - MGM Resorts International has appointed Ryan Abboushi as President of Entertainment, aiming to enhance its live entertainment and immersive experiences [1][2] - Abboushi brings 16 years of experience from Creative Arts Agency (CAA), where he was involved in numerous film and television projects [2][3] - His responsibilities will include overseeing venue utilization, show bookings, talent management, and building branded entertainment experiences across MGM Resorts' destinations [3] Company Overview - MGM Resorts International is a global gaming and entertainment company listed on the S&P 500, with a portfolio of 31 hotel and gaming destinations worldwide [4] - The company operates BetMGM, a joint venture offering sports betting and online gaming in North America, and is expanding into Asia with a resort development in Japan [4] - MGM Resorts is recognized for its commitment to sustainability and has been listed among FORTUNE Magazine's World's Most Admired Companies [4]

Core Insights - PENN Entertainment reported $1.67 billion in revenue for Q1 2025, a 4.1% year-over-year increase, with an EPS of -$0.25 compared to -$0.79 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $1.7 billion by 1.74%, while the EPS exceeded the consensus estimate of -$0.29 by 13.79% [1] Revenue Performance by Segment - Northeast segment revenue was $680.90 million, slightly below the estimated $683.75 million, reflecting a year-over-year decrease of 0.6% [4] - South segment revenue reached $288.30 million, exceeding the estimated $287.13 million, but showing a year-over-year decline of 3.4% [4] - West segment revenue was $129.70 million, surpassing the estimated $127.21 million, with a year-over-year increase of 0.7% [4] - Midwest segment revenue was $282.90 million, below the estimated $286.12 million, indicating a year-over-year decrease of 2.9% [4] - Interactive segment revenue was $290.10 million, significantly higher than the estimated $312.88 million, marking a year-over-year increase of 39.7% [4] - Other segment revenue was $5.30 million, below the estimated $6.15 million, reflecting a year-over-year decline of 11.7% [4] - Intersegment eliminations reported a revenue of -$4.70 million, better than the estimated -$7.50 million, with a year-over-year change of -53% [4] Stock Performance - PENN Entertainment's shares have returned -3.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of 11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - PENN Entertainment is expected to report a quarterly loss of $0.29 per share, a 63.3% increase in losses compared to the same period last year, with revenues projected at $1.7 billion, reflecting a year-over-year increase of 5.9% [1] Earnings Estimates - The consensus EPS estimate has been revised down by 48.6% over the last 30 days, indicating a significant reevaluation by analysts [2] - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3] Revenue Projections - Analysts estimate 'Revenues- West segment' to be $127.21 million, a decrease of 1.2% year over year [5] - The 'Revenues- Interactive segment' is projected at $312.88 million, indicating a substantial increase of 50.6% from the prior-year quarter [5] - 'Revenues- Midwest segment' is expected to reach $286.12 million, reflecting a year-over-year decline of 1.8% [5] - 'Revenues- Northeast segment' is projected at $683.75 million, showing a slight decrease of 0.1% from the year-ago quarter [6] - 'Revenues- South segment' is anticipated to be $287.13 million, indicating a year-over-year decline of 3.8% [6] - 'Revenues- Other segment' is expected to reach $6.15 million, reflecting a year-over-year increase of 2.5% [6] Adjusted EBITDAR Estimates - 'Adjusted EBITDAR- Midwest segment' is estimated at $111.47 million, down from $117 million in the previous year [7] - 'Adjusted EBITDAR- West segment' is projected at $45.25 million, slightly lower than the $45.90 million reported in the same quarter last year [7] - 'Adjusted EBITDAR- South segment' is expected to be $104.05 million, down from $113.50 million in the prior year [8] - 'Adjusted EBITDAR- Northeast segment' is projected at $200.12 million, compared to $202.60 million reported in the same quarter last year [8] Stock Performance - Over the past month, shares of PENN Entertainment have returned +12.6%, outperforming the Zacks S&P 500 composite's +11.5% change [8] - Currently, PENN carries a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [8]

Group 1 - The market sentiment around Caesars Entertainment (CZR) stock indicates a potential bullish outlook, suggesting that there are favorable conditions for investment in the company [1] - The author has been involved in investment analysis since 2011, focusing on value investing, which may provide a context for the analysis of Caesars Entertainment [1] Group 2 - No specific financial data or performance metrics related to Caesars Entertainment are provided in the text [2][3]