Melco Resorts & Entertainment (NASDAQ:MLCO) Announces Quarterly Earnings Results

Melco Resorts & Entertainment (NASDAQ:MLCO) issued its earnings results on Wednesday. The company reported $0.02 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.03) by $0.05, FiscalAI reports. Melco Resorts & Entertainment had a net margin of 4.50% and a negative return on equity of 23.81%. The firm had revenue of $1.17 billion during the quarter, compared to analysts’ expectations of $1.21 billion. During the same quarter last year, the company posted $0.21 earnings per share. The firm’s revenue was down 10.4% compared to the same quarter last year.

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 3.1%

Shares of Melco Resorts & Entertainment stock traded down $0.14 during trading hours on Thursday, reaching $4.57. 2,126,606 shares of the company’s stock were exchanged, compared to its average volume of 2,161,732. The company has a market capitalization of $1.74 billion, a P/E ratio of 7.61, a price-to-earnings-growth ratio of 3.24 and a beta of 0.49. Melco Resorts & Entertainment has a 1 year low of $3.67 and a 1 year high of $9.53. The business has a fifty day moving average of $4.50 and a two-hundred day moving average of $5.37.

More Melco Resorts & Entertainment News

Here are the key news stories impacting Melco Resorts & Entertainment this week:

• Positive Sentiment: Melco reported third-quarter earnings of $0.02 per share, above the consensus estimate of a $0.03-per-share loss. Melco Resorts Tops Q3 Earnings Estimates
• Negative Sentiment: Revenue was $1.17 billion, below the $1.21 billion analyst estimate and down 10.4% year over year. Earnings also fell from $0.21 per share in the year-ago quarter, tempering the earnings-estimate beat. Melco revenue falls 10% in third quarter
• Negative Sentiment: Susquehanna cut its rating on MLCO from “positive” to “neutral” and lowered its price target from $5 to $4, signaling a less favorable outlook and adding to selling pressure. Susquehanna stock recommendations

Analyst Upgrades and Downgrades

MLCO has been the subject of a number of recent research reports. Texas Capital lowered Melco Resorts & Entertainment from a “strong-buy” rating to a “hold” rating in a research note on Friday, October 16th. CLSA raised Melco Resorts & Entertainment from a “hold” rating to an “outperform” rating and decreased their price target for the company from $6.10 to $6.00 in a report on Friday, July 10th. Piper Sandler set a $5.50 price objective on shares of Melco Resorts & Entertainment in a research note on Friday, October 16th. Citigroup began coverage on shares of Melco Resorts & Entertainment in a research note on Monday, October 12th. They issued a “buy” rating and a $9.40 target price for the company. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Melco Resorts & Entertainment in a report on Tuesday, August 18th. Three equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $6.45.

About Melco Resorts & Entertainment

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.