Melco Resorts & Entertainment AD Down 11.39% To $7.90 After Earnings Miss

Tuesday, November 7, 2023 - Melco Resorts & Entertainment AD (MLCO) reported downside earnings and revenues today.

Melco Resorts & Entertainment AD's earnings came in at an EPS loss of $0.03 per share, 183% lower than estimates for an EPS of $0.03 per share. The firm's loss per share narrowed by 95% since reporting a loss of $0.522 per share a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Revenues were downbeat at $1 billion. That is an increase of 320.53% in revenues from the year-ago report and is 1.26% lower than consensus estimates set at $1 billion.

The stock is down 11.39% to $7.90 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 71. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Melco Resorts is one of only six licenced casino operators in Macao, the only region in China with legalized gambling. It operates Altira, a complex focused on VIP customers; City of Dreams, an integrated resort in Cotai serving both mass-market and premium-end patrons; and Mocha Clubs electronic gaming machines. In addition, the company also has a majority interest in Studio City opened in October 2015. Outside Macao, Melco also owns City of Dreams Manila in Philippines, and City of Dreams Mediterranean in Cyprus. The business mix in term of adjusted EBITDA was about 84% from Macao, and the rest largely from Philippines as of the prepandemic 2019 levels.