MGM Resorts International (NYSE:MGM) Stock Falls After Q3 Earnings Miss

MGM Resorts International (NYSE:MGM) has released its third-quarter 2025 financial results, revealing a performance that fell short of analyst expectations on profitability, triggering a notable negative reaction in after-hours trading.

Earnings and Revenue Performance

The company reported consolidated net revenues of $4.25 billion for the quarter, representing a modest 2% increase compared to the same period last year. However, this figure narrowly missed the analyst consensus estimate of $4.27 billion. The more significant deviation from expectations was in profitability.

• Reported Non-GAAP EPS: $0.24
• Analyst Estimated Non-GAAP EPS: $0.40

The earnings per share result of $0.24 was substantially below the $0.40 forecast, indicating pressure on the company's bottom line despite the slight revenue growth.

Market Reaction

The market's immediate response to the earnings miss has been decisively negative. Following the release, MGM's stock experienced a sharp decline in after-hours trading, dropping approximately 6.7%. This sell-off suggests investor disappointment, particularly with the company's inability to meet earnings projections. The negative momentum adds to a challenging recent period for the stock, which has declined around 7.8% over the past month.

Operational Highlights from the Quarter

While the financial metrics versus estimates drove the market's reaction, the company's press release highlighted several operational strengths. A key bright spot was the performance of MGM China, which reported achieving a record third quarter for Segment Adjusted EBITDAR. The division also increased its market share to 15.5%, underscoring a robust recovery and competitive position in the Macau market. The company's digital betting arm, BetMGM, was also mentioned as continuing its operations in North America, though specific financial details for the segment were not provided in the summary.

Looking Ahead

With the third-quarter results now public, investor attention will shift to the company's ability to meet future expectations. Analysts have already established estimates for the upcoming period and the full year.

• Q4 2025 Analyst Estimates:
  • Revenue: $4.46 billion
  • EPS: $0.67
• Full-Year 2025 Analyst Estimates:
  • Revenue: $17.51 billion
  • EPS: $2.53

The company's forthcoming commentary, typically provided in earnings calls, will be scrutinized for its outlook on achieving these targets and its strategy for improving profitability in the face of current challenges.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data available on the MGM earnings and estimates page.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.