Analyst Estimates: Here's What Brokers Think Of MGM Resorts International (NYSE:MGM) After Its Second-Quarter Report

It's been a sad week for MGM Resorts International (NYSE:MGM), who've watched their investment drop 10% to US$37.29 in the week since the company reported its quarterly result. Results overall were respectable, with statutory earnings of US$0.60 per share roughly in line with what the analysts had forecast. Revenues of US$4.3b came in 2.9% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for MGM Resorts International

Following last week's earnings report, MGM Resorts International's 21 analysts are forecasting 2024 revenues to be US$17.3b, approximately in line with the last 12 months. Statutory earnings per share are expected to shrink 6.9% to US$2.62 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$17.2b and earnings per share (EPS) of US$2.61 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$56.23, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic MGM Resorts International analyst has a price target of US$65.00 per share, while the most pessimistic values it at US$44.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await MGM Resorts International shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that MGM Resorts International's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.5% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.6% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than MGM Resorts International.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$56.23, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple MGM Resorts International analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that MGM Resorts International is showing 2 warning signs in our investment analysis , you should know about...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com