Melco Resorts & Entertainment (NASDAQ:MLCO) Posts 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 quarterly earnings results on Thursday. The company reported $0.23 EPS for the quarter, beating analysts' consensus estimates of $0.09 by $0.14, Zacks reports. The firm had revenue of $1.33 billion for the quarter, compared to analysts' expectations of $1.20 billion. Melco Resorts & Entertainment had a negative return on equity of 19.20% and a net margin of 1.15%. The business's revenue for the quarter was up 14.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.05 EPS.

Melco Resorts & Entertainment Trading Up 1.8%

Shares of MLCO traded up $0.16 during mid-day trading on Friday, reaching $8.81. 3,605,163 shares of the stock traded hands, compared to its average volume of 3,135,630. The company has a market cap of $3.70 billion, a price-to-earnings ratio of 67.77 and a beta of 0.83. Melco Resorts & Entertainment has a 1 year low of $4.55 and a 1 year high of $9.16. The firm has a fifty day moving average price of $7.55 and a 200 day moving average price of $6.23.

Institutional Investors Weigh In On Melco Resorts & Entertainment

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Royal Bank of Canada grew its position in Melco Resorts & Entertainment by 11.1% during the first quarter. Royal Bank of Canada now owns 180,161 shares of the company's stock worth $949,000 after buying an additional 18,010 shares in the last quarter. Millennium Management LLC boosted its position in shares of Melco Resorts & Entertainment by 69.3% during the 1st 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 during the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in shares of Melco Resorts & Entertainment by 16.4% during the first quarter. Goldman Sachs Group Inc. now owns 6,015,200 shares of the company's stock worth $31,700,000 after purchasing an additional 846,504 shares in the last quarter. Hedge funds and other institutional investors own 39.62% of the company's stock.

Analysts Set New Price Targets

MLCO has been the topic of several recent research reports. UBS Group downgraded shares of Melco Resorts & Entertainment from a "buy" rating to a "sell" rating and set a $4.60 price objective on the stock. in a report on Wednesday, April 30th. Citigroup upped their price target on shares of Melco Resorts & Entertainment from $11.00 to $11.50 and gave the company a "buy" rating in a research note on Friday. Susquehanna reaffirmed a "positive" rating and issued a $10.00 price objective (up from $8.00) on shares of Melco Resorts & Entertainment in a report on Wednesday. Wall Street Zen upgraded shares of Melco Resorts & Entertainment from a "hold" rating to a "buy" rating in a research note on Monday, July 7th. Finally, Bank of America increased their target price on Melco Resorts & Entertainment from $5.70 to $6.60 and gave the stock a "neutral" rating in a research report on Tuesday, May 20th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and five have issued a buy rating to the company's stock. According to data from MarketBeat.com, Melco Resorts & Entertainment currently has a consensus rating of "Moderate Buy" and an average target price of $8.15.

Melco Resorts & Entertainment Company Profile

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.

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