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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. 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 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 sink 11% to US$2.33 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$17.2b and earnings per share (EPS) of US$2.33 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
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. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. 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. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that MGM Resorts International's revenue growth is expected to slow, with the forecast 0.3% annualised growth rate until the end of 2025 being well below the historical 18% 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 9.8% 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.