MLCO Earnings Prediction
The chart below shows how MLCO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MLCO sees a +4.87% change in stock price 10 days leading up to the earnings, and a -0.37% change 10 days following the report. On the earnings day itself, the stock moves by -2.32%. This data can give you a slight idea of what to expect for the next quarter's release.
MLCO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.19B
8.91%
1.35%
Gross Margin
--
--
--
Operating Margin
-50.87%
489.46%
-531.47%
Net Margin
--
--
--
EPS
--
--
--
No Data Available
MLCO Earnings Analysis
Melco Resorts & Entertainment Ltd Corporation (MLCO.O) Earnings Conference Call
Positive
Macau Market Share Growth: Market share in Macau grew to approximately 15.6% in December 2024, indicating a strong recovery and growth trajectory.
Increased Customer Engagement: Property visitation exceeded pre-pandemic levels for the first time since reopening, showcasing increased customer engagement.
Strong GGR Performance: Total GGR excluding junkets outpaced both 2024 and 2019 during the Chinese New Year, reflecting robust demand and performance.
Chinese New Year Peak Performance: A single day during the Chinese New Year ranked among the top 10 all-time highs for mass drop and GGR days, highlighting peak performance.
Future Revenue Growth Plans: Plans to reopen the House of Dancing Water in May 2025 and other projects are expected to further drive visitation and revenue growth.
Property Investment Strategy: Investment in properties continues, with a focus on enhancing visibility and accessibility to attract high-value customers.
Customer Experience Enhancement: Completion of the high limit area revamp at Studio City and renovations at City of Dreams are set to enhance customer experience and traffic.
Baccarat Table Upgrades: All baccarat tables in Macau will be upgraded to smart tables by the end of March 2025, improving marketing and player reinvestment strategies.
Resilience Amid Regional Challenges: City of Dreams, Mediterranean and satellite casinos in Cyprus achieved solid results despite regional challenges, indicating resilience.
EBITDA and Market Share Growth: City of Dreams, Manila showed growth in EBITDA and market share quarter-to-quarter, demonstrating strong operational performance.
Strong Liquidity Position: The company has a strong liquidity position with $3.3 billion available, including $1.3 billion in cash, providing financial flexibility.
Debt Maturity Coverage: Debt maturities in 2025 are covered, with $1.8 billion in available capacity under the revolving credit facility, ensuring stability.
Share Repurchase Confidence: Share repurchases indicate confidence in the company's valuation, with 132 million ADSs repurchased since the third quarter of 2024.
Negative
Macau OpEx Increase: OpEx in Macau increased to $3.2 million per day in Q4 2024, partly due to new activations and additional programming, which could indicate rising operational costs.
Rising Corporate Expenses: Corporate expense in Q4 2024 was $25 million, an increase compared to the prior quarter, primarily due to the payment of trademark license fees, suggesting higher ongoing costs.
Debt Maturity Risk: Despite a strong liquidity position, the company has approximately $1.2 billion of debt coming due in 2025, which could pose a financial risk if not managed properly.
Strategic Alternatives Exploration: The company is exploring strategic alternatives for City of Dreams, Manila, which may indicate challenges in that market or a shift in business strategy that could affect future performance.
OpEx Impact on Profitability: The increase in OpEx and corporate expenses could impact overall profitability if revenue growth does not keep pace with these rising costs.
MLCO FAQs
How does MLCO typically perform around its earnings report dates?
Is Melco Resorts & Entertainment Ltd (MLCO) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
MLCO Earning Call Sentiment
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) Q4 2024 Earnings Call Transcript
MLCO.O
1.33%Positive
The earnings call reveals mixed signals: strong EBITDA growth and liquidity are offset by regulatory and competitive pressures. While OpEx is projected to decline, high debt maturities and uncertain regulatory conditions pose risks. The share repurchase program is a positive, but the lack of clarity on strategic alternatives and asset-light strategy tempers optimism. Given the market cap of $3.34 billion, the stock is likely to experience moderate movement, resulting in a neutral sentiment prediction.
