MGM Resorts International Just Beat EPS By 7.1%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that MGM Resorts International (NYSE:MGM) released its full-year result to the market. The early response was not positive, with shares down 5.1% to US$38.30 in the past week. MGM Resorts International reported US$17b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.40 beat expectations, being 7.1% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for MGM Resorts International

Following last week's earnings report, MGM Resorts International's 20 analysts are forecasting 2025 revenues to be US$17.3b, approximately in line with the last 12 months. Statutory earnings per share are expected to drop 11% to US$2.33 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$2.33 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of US$49.51, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values MGM Resorts International at US$60.00 per share, while the most bearish prices it at US$39.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 2025 expected to display 0.3% growth on an annualised basis. This is compared to a historical growth rate of 18% 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 9.8% 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 important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on MGM Resorts International. Long-term earnings power is much more important than next year's profits. We have forecasts for MGM Resorts International going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for MGM Resorts International you should be aware of.

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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.