News

Melco Resorts & Entertainment Limited MLCO reported lower-than-expected second-quarter 2024 results with earnings and revenues missing the Zacks Consensus Estimate but increasing on a year-over-year basis.

The quarterly performance was backed by increased revenue contributions from casino, rooms and food and beverage. This was partially offset by soft contributions from entertainment, retail and other operations.

Furthermore, improved performance in the mass market segment and non-gaming operations, led by continued recovery in inbound tourism to Macau, aided the uptrend.

Inside the Headlines

The company reported adjusted earnings per share of 6 cents, which missed the Zacks Consensus Estimate of 10 cents by 40%. In the prior-year quarter, it reported an adjusted loss of 2 cents per share.

Total operating revenues of $1.16 billion also marginally missed the consensus mark of $1.17 billion by 0.5%. The top line grew 22.3% on a year-over-year basis.

Melco Resorts & Entertainment Limited Price, Consensus and EPS Surprise

Melco Resorts & Entertainment Limited price-consensus-eps-surprise-chart | Melco Resorts & Entertainment Limited Quote

Operating revenues at City of Dreams and Studio City were $576.4 million and $352.3 million, respectively, compared with $506.2 million and $236.0 million in the year-ago quarter. Operating revenues of $29.3 million at Altira Macau were flat year over year.

Operating revenues at City of Dreams Manila and City of Dreams Mediterranean and Other were $109.0 million and $58.7 million, respectively, compared with the year-ago values of $116.4 million and $30.9 million.

Operating Results

Adjusted property EBITDA increased to $302.8 million from $267.3 million in the year-ago quarter.

Total operating expenses increased year over year to $1.04 billion from $883.7 million. General and administrative expenses increased to $144.4 million from $118.3 million reported a year ago.

Financial Information

As of Jun 30, 2024, Melco had cash and cash equivalents of $1.15 billion compared with $1.31 billion as of Dec 31, 2023. Net long-term debt at the end of the second quarter declined to $7.22 billion from $7.47 billion at 2023-end.

Zacks Rank & Recent Consumer Discretionary Releases

Melco currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Choice Hotels International, Inc. CHH delivered lower-than-expected second-quarter 2024 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate. However, both metrics increased on a year-over-year basis.

The quarter’s performance was backed by strong demand trends across the company’s diversified portfolio of brands. This uptrend in demand aided in accelerating global hotel openings, expanding international market reach and increasing the size of its rewards program. Moreover, CHH’s versatile business model and accretive growth strategies ensure the support required to foster its growth trends.

Planet Fitness, Inc. PLNT reported stellar second-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and increasing year over year.

The quarter’s performance was driven by contributions from new store openings, higher royalty revenues and an asset-light growth model. The strength in the contributions from these factors was reflected in the year-over-year increase in system-wide same-store sales. PLNT aims to define its growth prospects by capitalizing on meaningful opportunities across the industry, globally. Also, its aim to deliver enhanced shareholder value bodes well.

Wynn Resorts, Limited WYNN reported lower-than-expected second-quarter 2024 results, wherein adjusted earnings and revenues missed the Zacks Consensus Estimate. On the other hand, both metrics rose year over year.

The quarter’s results reflect strong contributions from the Wynn Palace, Wynn Macau and Las Vegas operations, partially offset by softer contributions from the Encore Boston Harbor operations. The company’s continuous investments in expanding the business operations on a global scale, along with ensuring shareholder value, are commendable. This prudent attitude positions WYNN well for growth in 2024 and beyond.

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