MGM Resorts International
) is scheduled to report third quarter 2013 earnings on Oct 31,
2013. Last quarter, MGM Resorts posted a positive earnings
surprise of 300.0%. Let's see how things are shaping up for this
Why a Likely Positive Surprise?
Our proven model shows that MGM Resorts is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is +300.0%. This is
meaningful and a leading indicator of a likely positive earnings
surprise for the shares.
Zacks Rank #3 (Hold):
MGM carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks
Rank #1, #2 and #3 have a significantly higher chance of beating
earnings estimates. The sell rated stocks (#4 and #5) should
never be considered going into an earnings
The combination of MGM's Zacks Rank #3 and a positive
ESP of +300.0% makes us confident of an earnings beat on Oct
What is Driving the Better-than-Expected
MGM Resorts has benefited immensely from improving gaming
trends in both Las Vegas and Macau in the recent times.
Solid retail booking and moderate growth in convention room
nights in Las Vegas are expected to drive the results in the
third quarter. Increased casino gaming activity will also likely
be responsible for growth in the upcoming quarter.
MGM derives a solid share of its revenues from Macau, one of
the largest gaming destinations in the world. The VIP business in
Macau, which witnessed a slowdown owing to a weakening Chinese
economy, appears to be back on track since the fourth quarter of
2012. A positive trend in Macau is expected, buoyed by a gradual
recovery in VIP gaming, upgrades to main gaming floor products,
marketing initiatives as well as substantial growth in Macau mass
market gaming revenues.
Other Stocks to Consider
Here are some other companies in the gaming industry that can
be considered as our model shows that they have the right
combination of elements to post an earnings beat this
Melco Crown Entertainment Limited
), Earnings ESP of +6.45% and a Zacks Rank #1 (Strong Buy).
Bally Tech Inc.
), Earnings ESP of +1.11% and a Zacks Rank #3 (Hold).
Penn National Gaming Inc.
), Earnings ESP of + 2.38% and a Zacks Rank #3 (Hold).
BALLY TECH INC (BYI): Free Stock Analysis
MGM RESORTS INT (MGM): Free Stock Analysis
MELCO CROWN ENT (MPEL): Free Stock Analysis
PENN NATL GAMNG (PENN): Free Stock Analysis
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