MGM Resorts International (NYSE:MGM) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Last week saw the newest first-quarter earnings release from MGM Resorts International (NYSE:MGM), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of US$4.3b and statutory earnings per share of US$0.51. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in MGM Resorts International. Read for free now.

Following last week's earnings report, MGM Resorts International's 19 analysts are forecasting 2025 revenues to be US$17.2b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decrease 9.5% to US$2.24 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$2.31 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

See our latest analysis for MGM Resorts International

It might be a surprise to learn that the consensus price target was broadly unchanged at US$45.96, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values MGM Resorts International at US$59.00 per share, while the most bearish prices it at US$35.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that MGM Resorts International's revenue growth is expected to slow, with the forecast 0.4% annualised growth rate until the end of 2025 being well below the historical 21% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that MGM Resorts International is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for MGM Resorts International. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for MGM Resorts International going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with MGM Resorts International , and understanding it should be part of your investment process.

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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.