Investing

Earnings Previews: Electronic Arts, MGM Resorts, Uber and More

MGM Resorts

Resort and casino operator MGM Resorts International (NYSE: MGM) has seen its share price jump by nearly 128% over the past 12 months. The shares gave up about 4.5% in 2020, after recovering from a plunge of around 80% in late March. For 2021 to date, the stock is up about 16.5%. Last week, analysts at Goldman Sachs lifted their rating on the stock from Sell to Neutral, due in part to significant increases in MGM’s share of online sports betting and iGaming.

Of 15 analysts covering the stock, nine rate the shares a Hold, while the others have Buy or Strong Buy ratings. At a price of around $36.70, MGM stock’s potential upside to a median price target of $46 is 25%. At the high price target of $55, the upside potential is almost 50%.

Analysts expect MGM to report second-quarter revenue of $2.17 billion, nearly 32% sequentially and about nine times revenue of $289.8 million in the year-ago quarter. The company is expected to post a loss per share of $0.37 in the quarter, sharply better than the year-ago loss of $1.52 and almost half the first-quarter loss of $0.68 per share. For the full fiscal year, MGM is expected to lose $1.91 per share, compared with a per-share loss of $3.94 in 2020. Revenue is forecast to rise by 73% to $8.93 billion.

MGM stock trades at 148.7 times estimated 2022 earnings and 41.4 times estimated 2023 earnings. The stock’s 52-week range is $16.29 to $45.34, and the company pays an annual dividend of $0.01 (yield of 0.03%).

Uber

Ride-hailing company Uber Technologies Inc. (NYSE: UBER) has posted a share price gain of more than 38% over the past 12 months, including a spike that saw the share price up nearly 24% between January 1 and February 10. For the year to date, though, shares are down nearly 18%. The company is expected to get a boost from increased ridership in the second quarter, but there is some uncertainty going forward due to the surge in infections from the Delta variant of the coronavirus.

Analysts remain strongly bullish on the stock, with 36 of 42 brokerages rating the shares a Buy or Strong Buy. Another five give the stock a Hold rating. At a price of around $41.90, the upside potential based on a median price target of $72 is almost 72%. At the high price target of $80, the potential gain is about 91%.

Revenue is forecast to rise 29.6% sequentially and 67.8% year over year to $3.76 billion. The second-quarter forecast calls for a loss per share of $0.32, compared with EPS of $0.45 in the first quarter and a year-ago loss of $0.65 per share. For the full year, Uber is expected to post a loss per share of $0.52, compared with a loss of $2.86 per share in 2020. Revenue for the fiscal year is expected to rise by 41.5% to $15.76 billion.

With a loss also projected for 2022, the stock trades at 36.7 times estimated 2023 earnings. Uber’s 52-week range is $28.48 to $64.05. The company does not pay a dividend.

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