Melco Resorts & Entertainment Limited (NASDAQ:MLCO) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results look to have been somewhat negative – revenue fell 6.9% short of analyst estimates at US$213m, although statutory losses were somewhat better. The per-share loss was US$0.69, 47% smaller than the analysts were expecting prior to the result. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Melco Resorts & Entertainment’s 16 analysts are now forecasting revenues of US$4.79b in 2021. This would be a sizeable 81% improvement in sales compared to the last 12 months. Melco Resorts & Entertainment is also expected to turn profitable, with statutory earnings of US$0.33 per share. In the lead-up to this report, the analysts had been modelling revenues of US$4.79b and earnings per share (EPS) of US$0.28 in 2021. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the substantial gain in earnings per share expectations following these results.
The consensus price target was unchanged at US$21.21, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Melco Resorts & Entertainment analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$10.40. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.