MGM Resorts International (NYSE:MGM) is preparing to announce its Q3 2023 results on Wednesday, November 8. The company's key performance contributors are expected to be robust revenues from MGM China (OTC:MCHVY), international expansion, sports betting and iGaming prospects, higher business volume and travel, and an enhanced interface and customer experience.
MGM China's revenues are predicted to surge by a staggering 791.2% year-on-year to $779.7 million. This growth is largely attributed to the firm's successful bonus optimization strategy, which has aided in boosting sports betting and iGaming prospects.
However, the company is facing challenges with declining revenues for its Las Vegas Strip and Regional operations. These are projected to fall by 12.5% and 16%, respectively. Rising costs are also impacting margins significantly, with expenses for rooms, casinos, food and beverages expected to rise.
Despite these challenges, MGM Resorts previously exceeded the Zacks Consensus Estimate by 11.3%. The revised adjusted EPS consensus stands at 59 cents, with a year-on-year revenue increase of 13.4% at $3.87 billion expected.
InvestingPro Insights
According to InvestingPro's real-time data, MGM Resorts International has a market capitalization of 13.42 billion USD and a P/E ratio of 39.33, indicating a high earnings multiple. Over the last twelve months as of Q2 2023, MGM's revenue growth was 25.57%, reflecting a strong financial performance.
Two InvestingPro Tips worth noting are MGM's aggressive share buyback strategy and the expectation of continued dividend payments, thanks to robust earnings. This aligns with the company's strong revenue growth and suggests a confident outlook from management. On the other hand, the stock price movements have been quite volatile, which may be a point of consideration for potential investors.
For those interested in more in-depth analysis and additional tips, InvestingPro offers a comprehensive set of 11 tips and a wealth of data metrics for MGM Resorts International. This information can provide valuable insights into the company's financial health and future prospects.
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