Melco Resorts & Entertainment (NASDAQ:MLCO) Announces Quarterly Earnings Results

Key Points

• Melco Resorts & Entertainment reported a quarterly earnings per share (EPS) of $0.23, significantly exceeding analysts' estimates of $0.09, with revenues of $1.33 billion compared to expectations of $1.20 billion.
• The company's negative return on equity stands at 19.20%, while it achieved a net margin of 1.15%, showing a revenue increase of 14.5% year-over-year.
• Recent analyst reports showed mixed ratings, with UBS downgrading the stock to a "sell" rating and other firms like Citigroup and Susquehanna issuing "buy" ratings with price targets ranging from $4.60 to $11.50.

Melco Resorts & Entertainment (NASDAQ:MLCO - Get Free Report) issued its earnings results on Thursday. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.09 by $0.14, Zacks reports. The company had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.20 billion. Melco Resorts & Entertainment had a negative return on equity of 18.47% and a net margin of 1.15%. The firm's quarterly revenue was up 14.5% on a year-over-year basis. During the same quarter last year, the business posted $0.05 EPS.

Melco Resorts & Entertainment Stock Performance

Shares of Melco Resorts & Entertainment stock traded down $0.10 during trading hours on Wednesday, reaching $8.69. 810,306 shares of the company were exchanged, compared to its average volume of 3,989,283. Melco Resorts & Entertainment has a 1 year low of $4.55 and a 1 year high of $9.16. The stock's fifty day moving average is $7.65 and its 200 day moving average is $6.28. The firm has a market cap of $3.65 billion, a PE ratio of 66.89 and a beta of 0.83.

Hedge Funds Weigh In On Melco Resorts & Entertainment

Several large investors have recently bought and sold shares of the business. Goldman Sachs Group Inc. increased its holdings in Melco Resorts & Entertainment by 16.4% in the first quarter. Goldman Sachs Group Inc. now owns 6,015,200 shares of the company's stock valued at $31,700,000 after buying an additional 846,504 shares during the last quarter. Millennium Management LLC boosted its stake in Melco Resorts & Entertainment by 69.3% in the first quarter. Millennium Management LLC now owns 1,915,978 shares of the company's stock valued at $10,097,000 after acquiring an additional 784,403 shares in the last quarter. Finally, Royal Bank of Canada boosted its stake in Melco Resorts & Entertainment by 11.1% in the first quarter. Royal Bank of Canada now owns 180,161 shares of the company's stock valued at $949,000 after acquiring an additional 18,010 shares in the last quarter. Hedge funds and other institutional investors own 39.62% of the company's stock.

Analyst Upgrades and Downgrades

MLCO has been the subject of a number of research analyst reports. Citigroup raised their target price on Melco Resorts & Entertainment from $11.00 to $11.50 and gave the stock a "buy" rating in a research note on Friday, August 1st. Susquehanna increased their price target on Melco Resorts & Entertainment from $8.00 to $10.00 and gave the stock a "positive" rating in a research report on Wednesday, July 30th. UBS Group downgraded Melco Resorts & Entertainment from a "buy" rating to a "sell" rating and set a $4.60 price target on the stock. in a research report on Wednesday, April 30th. JPMorgan Chase & Co. raised Melco Resorts & Entertainment from a "neutral" rating to an "overweight" rating and increased their price target for the stock from $7.20 to $9.50 in a research report on Tuesday, July 1st. Finally, Wall Street Zen raised Melco Resorts & Entertainment from a "hold" rating to a "buy" rating in a research report on Monday, July 7th. One analyst has rated the stock with a sell rating, one has given a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat, Melco Resorts & Entertainment currently has an average rating of "Moderate Buy" and a consensus price target of $8.15.

About Melco Resorts & Entertainment

Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. It owns and operates City of Dreams, an integrated casino resort that has 500 gaming tables and 800 gaming machines; approximately 1,400 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 30 restaurants and bars, and 150 retail outlets; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spa and salons, and banquet and meeting facilities.