Melco Resorts & Entertainment (NASDAQ:MLCO) Releases Earnings Results, Meets Estimates

Melco Resorts & Entertainment (NASDAQ:MLCO) posted its quarterly earnings data on Thursday. The company reported $0.06 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.06, Briefing.com reports. Melco Resorts & Entertainment had a negative return on equity of 32.60% and a net margin of 4.33%.The business’s revenue for the quarter was down 5.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.04 EPS.

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

• Macau faced near-term pressure in Q2 from lower-than-expected visitation, World Cup-related substitution of gaming spend, and an unfavorable City of Dreams Macau VIP win rate of 2.7% versus 3.9% a year earlier. Group adjusted property EBITDA was approximately $304 million, or $312 million excluding VIP hold effects.
• Management said post-World Cup trends improved in late July and early August, with customers returning and playing volumes normalizing. Macau daily operating expenses remained controlled at roughly HKD 3.3–3.4 million, including House of Dancing Water, despite the upcoming REM ramp-up.
• REM has soft-opened and is scheduled for a grand opening after Golden Week in October; management views the differentiated luxury product, new gaming areas, and City of Dreams retail revamp as catalysts for visitation and customer engagement. However, retail construction is expected to disrupt the property through approximately June 2027.
• The company’s non-Macau portfolio continued to grow, with City of Dreams Manila EBITDA up 9% year over year to $31 million, Cyprus EBITDA up 60%, and Sri Lanka generating positive EBITDA of $3.5 million as its casino operations ramp.
• Melco reported approximately $2.8 billion of available liquidity and extended and upsized its revolving credit facility to $2.8 billion through June 2031, supporting financial flexibility. The company repurchased approximately 22.4 million ADSs during the quarter and now expects to recommence a substantive dividend in 2027, while the 2027 debt maturities remain under review.

Melco Resorts & Entertainment Price Performance

Melco Resorts & Entertainment stock traded down $0.01 during trading hours on Thursday, hitting $5.50. The company had a trading volume of 1,486,893 shares, compared to its average volume of 2,262,461. The firm has a market cap of $2.14 billion, a PE ratio of 9.49, a PEG ratio of 3.47 and a beta of 0.59. Melco Resorts & Entertainment has a one year low of $5.07 and a one year high of $10.15. The firm has a 50-day moving average of $5.48 and a 200 day moving average of $5.65.

Institutional Trading of Melco Resorts & Entertainment

A number of institutional investors have recently bought and sold shares of the business. Royal Bank of Canada increased its position in shares of Melco Resorts & Entertainment by 11.1% in the first quarter. Royal Bank of Canada now owns 180,161 shares of the company’s stock worth $949,000 after purchasing an additional 18,010 shares during the period. Millennium Management LLC raised its position in Melco Resorts & Entertainment by 69.3% during the 1st quarter. Millennium Management LLC now owns 1,915,978 shares of the company’s stock worth $10,097,000 after purchasing an additional 784,403 shares during the last quarter. Goldman Sachs Group Inc. grew its position in shares of Melco Resorts & Entertainment by 16.4% in the 1st 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. Geode Capital Management LLC increased its position in Melco Resorts & Entertainment by 5.8% during the 2nd quarter. Geode Capital Management LLC now owns 369,491 shares of the company’s stock valued at $2,669,000 after purchasing an additional 20,165 shares during the period. Finally, Creative Planning increased its position in shares of Melco Resorts & Entertainment by 67.4% during the second quarter. Creative Planning now owns 17,981 shares of the company’s stock worth $130,000 after buying an additional 7,239 shares during the period. Institutional investors own 39.62% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on MLCO. Wall Street Zen lowered shares of Melco Resorts & Entertainment from a “buy” rating to a “hold” rating in a research note on Sunday, June 28th. CICC Research raised Melco Resorts & Entertainment to an “outperform” rating in a research report on Sunday, April 19th. Citigroup reduced their target price on shares of Melco Resorts & Entertainment from $10.50 to $9.40 and set a “buy” rating for the company in a research note on Friday, July 10th. JPMorgan Chase & Co. decreased their price target on shares of Melco Resorts & Entertainment from $6.00 to $5.70 and set a “neutral” rating for the company in a research note on Thursday, July 16th. Finally, Morgan Stanley downgraded Melco Resorts & Entertainment from an “overweight” rating to a “negative” rating in a research report on Monday, June 22nd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $7.43.

About Melco Resorts & Entertainment

Melco Resorts & Entertainment Limited (NASDAQ: MLCO) is a developer, owner and operator of integrated resort destinations in Asia and Europe. The company’s portfolio spans casino gaming, hotel accommodations, retail, dining and entertainment facilities. Melco’s properties feature a mix of luxury hotels, award-winning restaurants, high-limit gaming salons and entertainment venues, catering to a broad range of leisure and business travelers.

In Macau, Melco owns and operates flagship properties including City of Dreams Macau, Altira Macau and Studio City.