Melco Resorts & Entertainment remains a BUY despite a 37% YTD stock decline and weaker-than-expected 2Q26 results driven by World Cup headwinds. MLCO is positioned for market share gains in 2H26, leveraging the REM hotel reopening and anticipated peak October visitation. The stock trades at a 6.5x forward EV/EBITDA, an 18% discount to peers, with stronger forward EBITDA growth forecasts.
Melco Resorts & Entertainment NASDAQ: MLCO reported group-wide adjusted property EBITDA of approximately $304 million for the second quarter of 2026, as lower-than-expected visitation and an unfavorable VIP win rate weighed on margins in Macau.
The headline numbers for Melco (MLCO) give insight into how the company performed in the quarter ended June 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Melco Resorts (MLCO) came out with quarterly earnings of $0.06 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.23 per share a year ago.
Evaluate the expected performance of Melco (MLCO) for the quarter ended June 2026, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
Melco (MLCO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Melco Resorts & Entertainment remains a BUY as World Cup-driven Macau weakness appears priced in and fundamentals should strengthen into August's peak visitation. MLCO's 1Q26 Macau EBITDA grew 16% YoY with margins up to 27.4%, outperforming Las Vegas Sands in margin resilience. MLCO trades at 6.5x forward EV/EBITDA, a 17% discount to LVS and 36% below the consumer discretionary sector, with robust forward growth metrics.
Melco Resorts & Entertainment maintains cost discipline and premium positioning, driving resilient margins amid intense Macau competition. MLCO's 1Q26 adjusted property EBITDA margins rose to 27.4%, with 16% YoY EBITDA growth in Macau, supporting a 5% share price pop post-earnings. The upcoming 2H26 launch of the REM hotel positions MLCO as the only operator with new premium capacity, expected to catalyze earnings and market share gains.
While the top- and bottom-line numbers for Melco (MLCO) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Melco Resorts & Entertainment Limited (MLCO) Q1 2026 Earnings Call Transcript
Melco Resorts (MLCO) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.12 per share a year ago.
Melco (MLCO) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.