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

Melco Resorts & Entertainment (NASDAQ:MLCO) posted its earnings results on Wednesday. The company reported $0.02 earnings per share for the quarter, beating the consensus estimate of ($0.03) by $0.05, FiscalAI reports. Melco Resorts & Entertainment had a negative return on equity of 23.81% and a net margin of 4.50%. The company had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.21 billion. During the same period last year, the company earned $0.21 earnings per share. The business’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 Performance

Shares of NASDAQ MLCO traded up $0.49 during mid-day trading on Wednesday, hitting $4.70. 2,517,973 shares of the stock were exchanged, compared to its average volume of 2,157,678. The company has a market cap of $1.79 billion, a P/E ratio of 7.81, a PEG ratio of 3.17 and a beta of 0.49. Melco Resorts & Entertainment has a twelve month low of $3.67 and a twelve month high of $9.53. The stock’s fifty day simple moving average is $4.52 and its two-hundred day simple moving average is $5.38.

Analyst Upgrades and Downgrades

MLCO has been the subject of several recent analyst reports. Piper Sandler set a $5.50 price target on Melco Resorts & Entertainment in a research note on Friday, October 16th. CLSA upgraded Melco Resorts & Entertainment from a “hold” rating to an “outperform” rating and reduced their target price for the stock from $6.10 to $6.00 in a report on Friday, July 10th. CICC Research cut Melco Resorts & Entertainment from an “outperform” rating to a “market perform” rating in a research report on Sunday, October 18th. Capital One Financial set a $5.50 price target on Melco Resorts & Entertainment in a report on Friday, October 16th. Finally, JPMorgan Chase & Co. dropped their price target on shares of Melco Resorts & Entertainment from $6.00 to $5.70 and set a “neutral” rating on the stock in a research report on Thursday, July 16th. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $6.83.

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.