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

Melco Resorts & Entertainment (NASDAQ:MLCO) issued its quarterly earnings results on Wednesday. The company reported $0.02 earnings per share for the quarter, topping analysts’ consensus estimates 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 in the prior year, the business earned $0.21 EPS. Melco Resorts & Entertainment’s quarterly 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 Price Performance

Shares of MLCO stock traded up $0.48 during mid-day trading on Wednesday, hitting $4.68. The stock had a trading volume of 2,406,991 shares, compared to its average volume of 2,157,296. The firm has a market cap of $1.78 billion, a PE ratio of 7.81, a PEG ratio of 3.17 and a beta of 0.49. The company’s 50-day simple moving average is $4.52 and its 200-day simple moving average is $5.38. Melco Resorts & Entertainment has a fifty-two week low of $3.67 and a fifty-two week high of $9.53.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on MLCO shares. CLSA raised Melco Resorts & Entertainment from a “hold” rating to an “outperform” rating and lowered their price target for the stock from $6.10 to $6.00 in a report on Friday, July 10th. Capital One Financial set a $5.50 price objective on Melco Resorts & Entertainment in a research note on Friday, October 16th. Texas Capital cut Melco Resorts & Entertainment from a “strong-buy” rating to a “hold” rating in a research report on Friday, October 16th. Weiss Ratings reiterated a “sell (d)” rating on shares of Melco Resorts & Entertainment in a research note on Tuesday, August 18th. Finally, Piper Sandler set a $5.50 target price on Melco Resorts & Entertainment in a report on Friday, October 16th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Melco Resorts & Entertainment has a consensus rating of “Hold” and a consensus target price of $6.83.

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.