Melco Resorts & Entertainment (NASDAQ:MLCO) Announces Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• Melco reported quarterly EPS of $0.02, beating estimates of a $0.03 loss by $0.05, but revenue of $1.17 billion missed forecasts and fell 10.4% year over year.
• Management cited softer Macau demand and unfavorable VIP win rates, which reduced City of Dreams Macau property EBITDA by about $14 million; disciplined cost controls helped keep Macau operating expenses below guidance.
• The company reported about $2 billion in liquidity, reduced its capital-spending outlook, and said deleveraging remains a priority after debt repayments.

Melco Resorts & Entertainment (NASDAQ:MLCO - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $0.02 earnings per share for the quarter, beating analysts' consensus estimates of ($0.03) by $0.05, FiscalAI reports. The company had revenue of $1.17 billion for the quarter, compared to analysts' expectations of $1.21 billion. Melco Resorts & Entertainment had a negative return on equity of 23.81% and a net margin of 4.50%. Melco Resorts & Entertainment's quarterly revenue was down 10.4% on a year-over-year basis. During the same period last year, the firm earned $0.21 earnings per share.

Here are the key takeaways from Melco Resorts & Entertainment's conference call:

• Macau demand softened amid a competitive market: management cited broad weakness in October, when market revenue was down 10%, and said the softness appeared to extend beyond premium customers. Unfavorable VIP win rates at City of Dreams Macau also reduced property EBITDA by about $14 million.
• Melco emphasized disciplined spending and reinvestment, with Macau daily operating expenses declining to about $3.2 million, below guidance. Management said the company outperformed the broader Macau market in October after sales-force changes.
• Group adjusted property EBITDA was about $288 million, or $298 million adjusted for VIP hold. Cyprus delivered its highest quarterly EBITDA since opening, while Manila EBITDA remained steady at about $33 million quarter over quarter.
• The company reported about $2 billion in liquidity and no debt maturities in 2027 after redeeming $600 million of Melco notes and $165 million of Studio City notes, which management said reduced interest expense. It repurchased about $236 million of ADSs in 2026 to date; deleveraging remains the priority, while a dividend could resume toward the end of next year.
• Melco lowered its capital-spending outlook to about $375 million for 2026 and $275 million for 2027. Management expects City of Dreams renovations to begin unveiling progressively from year-end, with a substantial portion in place before Chinese New Year.

Melco Resorts & Entertainment Price Performance

Shares of MLCO traded up $0.48 during midday trading on Wednesday, reaching $4.68. 2,406,991 shares of the stock were exchanged, compared to its average volume of 2,157,296. The business's 50-day moving average price is $4.52 and its 200 day moving average price is $5.38. Melco Resorts & Entertainment has a twelve month low of $3.67 and a twelve month high of $9.53. The company has a market capitalization of $1.78 billion, a price-to-earnings ratio of 7.81, a PEG ratio of 3.17 and a beta of 0.49.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on MLCO shares. Capital One Financial set a $5.50 target price on Melco Resorts & Entertainment in a research report on Friday, October 16th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Melco Resorts & Entertainment in a report on Tuesday, August 18th. Citigroup started coverage on shares of Melco Resorts & Entertainment in a research note on Monday, October 12th. They issued a "buy" rating and a $9.40 price target on the stock. Texas Capital cut shares of Melco Resorts & Entertainment from a "strong-buy" rating to a "hold" rating in a report on Friday, October 16th. Finally, CLSA upgraded shares of Melco Resorts & Entertainment from a "hold" rating to an "outperform" rating and reduced their price objective for the stock from $6.10 to $6.00 in a research report on Friday, July 10th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $6.83.

About Melco Resorts & Entertainment

Melco Resorts & Entertainment Limited is a developer, owner and operator of integrated resort facilities focused on gaming, hospitality, entertainment, dining, retail and convention services. The company's properties combine casinos with luxury hotels, restaurants, shopping areas, theaters and other leisure attractions.

Melco operates several major resorts in Macau, including City of Dreams, Altira Macau and Studio City. Its Macau operations also include the Mocha Clubs electronic gaming-machine business.

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