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Melco Resorts (MLCO) Tops Q3 Earnings & Revenue Estimates

Melco Resorts & Entertainment Limited MLCO operates casino gaming and entertainment resort facilities primarily in Asia.

Per the Macau Gaming Inspection and Coordination Bureau, gross gaming revenues (GGR) rose in all the three months of the quarter, indicating that the Macau market might be on the recovery path. The company’s performance in the region is thus poised to get a boost aided by the improved operating environment therein.

Moreover, comparatively better performance at the non-gaming segments like rooms and food and beverages, are driving revenues. Also, the company’s cost-control efforts including effective management of marketing expenses are boosting profits and margins.

Investors should note that the consensus estimate for MLCO has hardly witnessed any significant movement over the last 60 days. Meanwhile, MLCO’s earnings have been strong over the past few quarters. In fact, the company posted positive earnings surprises in three of the last four quarters, with an average beat of 108.75%. Revenues outpaced the Zacks Consensus Estimate in each of the trailing four quarters.

MLCO currently has a Zacks Rank #3 (Hold) but that could change following Melco Resorts’ earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: MLCO beats on earnings. Our consensus earnings estimate called for earnings per share of 19 cents, and the company reported earnings of 31 cents per share.

Revenues: MLCO reported revenues of $1.38 billion. This surpassed our consensus estimate of $1.29 billion.

Key Stats to Note: Adjusted Property EBITDA was $400.2 million in the third quarter of 2017, up 38.4% year over year. The upside came mainly on the back of better performance in group-wide rolling chip segment.

Stock Price Impact: At the time of writing, the stock price of Melco Resorts was up over 3% during pre-market trading hours following the earnings release.

Check back for our full write up on this MLCO earnings report later!

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