Melco Resorts & Entertainment (NASDAQ:MLCO) Issues Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Melco Resorts & Entertainment (NASDAQ:MLCO) issued its earnings results on Wednesday. The company reported $0.02 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.03) by $0.05, Zacks reports. Melco Resorts & Entertainment had a negative return on equity of 15.89% and a net margin of 3.15%. The company had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.21 billion. During the same quarter last year, the company earned $0.21 EPS. The firm’s quarterly revenue was down 10.4% on a year-over-year basis.

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

• Macau demand softened amid a competitive market: management cited broad weakness in October, when market revenue was down 10%, and said the softness appeared to extend beyond premium customers. Unfavorable VIP win rates at City of Dreams Macau also reduced property EBITDA by about $14 million.
• Melco emphasized disciplined spending and reinvestment, with Macau daily operating expenses declining to about $3.2 million, below guidance. Management said the company outperformed the broader Macau market in October after sales-force changes.
• Group adjusted property EBITDA was about $288 million, or $298 million adjusted for VIP hold. Cyprus delivered its highest quarterly EBITDA since opening, while Manila EBITDA remained steady at about $33 million quarter over quarter.
• The company reported about $2 billion in liquidity and no debt maturities in 2027 after redeeming $600 million of Melco notes and $165 million of Studio City notes, which management said reduced interest expense. It repurchased about $236 million of ADSs in 2026 to date; deleveraging remains the priority, while a dividend could resume toward the end of next year.
• Melco lowered its capital-spending outlook to about $375 million for 2026 and $275 million for 2027. Management expects City of Dreams renovations to begin unveiling progressively from year-end, with a substantial portion in place before Chinese New Year.

Melco Resorts & Entertainment Stock Down 1.2%

NASDAQ MLCO traded down $0.06 during trading on Friday, hitting $4.50. 1,650,727 shares of the stock traded hands, compared to its average volume of 2,163,181. The company has a market capitalization of $1.71 billion, a P/E ratio of 10.99, a price-to-earnings-growth ratio of 3.63 and a beta of 0.49. The firm has a 50-day simple moving average of $4.49 and a 200-day simple moving average of $5.36. Melco Resorts & Entertainment has a 12-month low of $3.67 and a 12-month high of $9.53.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on MLCO. JPMorgan Chase & Co. cut their price objective on shares of Melco Resorts & Entertainment from $6.00 to $5.70 and set a “neutral” rating for the company in a report on Thursday, July 16th. CLSA upgraded shares of Melco Resorts & Entertainment from a “hold” rating to an “outperform” rating and reduced their price objective for the company from $6.10 to $6.00 in a research report on Friday, July 10th. Piper Sandler set a $5.50 target price on shares of Melco Resorts & Entertainment in a report on Friday, October 16th. Weiss Ratings restated a “sell (d)” rating on shares of Melco Resorts & Entertainment in a research report on Tuesday, August 18th. Finally, Capital One Financial set a $5.50 target price on shares of Melco Resorts & Entertainment in a research note on Friday, October 16th. Three investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Melco Resorts & Entertainment has a consensus rating of “Hold” and an average price target of $6.45.

Melco Resorts & Entertainment Company Profile

Melco Resorts & Entertainment Limited is a developer, owner and operator of integrated resort facilities focused on gaming, hospitality, entertainment, dining, retail and convention services. The company’s properties combine casinos with luxury hotels, restaurants, shopping areas, theaters and other leisure attractions.

Melco operates several major resorts in Macau, including City of Dreams, Altira Macau and Studio City. Its Macau operations also include the Mocha Clubs electronic gaming-machine business.