Stock of the Day - July 31, 2019

Melco Resorts & Entertainment (MLCO)

$5.45

+$0.03 (+0.6%)

Market Cap: $2.10B

About Melco Resorts & Entertainment

Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. It owns and operates City of Dreams, an integrated casino resort that has 500 gaming tables and 800 gaming machines; approximately 1,400 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 30 restaurants and bars, and 150 retail outlets; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spa and salons, and banquet and meeting facilities.

The company also operates Altira Macau, a casino hotel, which has approximately 112 gaming tables and 56 gaming machines; 230 hotel rooms; various fine dining and casual restaurants, and recreation and leisure facilities; and various non-gaming amenities comprising spa, gymnasium, outdoor garden podium, and sky terrace lounge. In addition, it operates Studio City, a cinematically-themed integrated entertainment, retail, and gaming resort that comprises 280 gaming tables and 980 gaming machines in Cotai, Macau. Further, the company owns and operates 7 Mocha Clubs with 1,034 gaming machines, as well as Taipa Square casino in Taipa Island, Macau. Additionally, it operates and manages City of Dreams Manila, a casino, hotel, retail, and entertainment integrated resort in the Entertainment City complex in Manila. The company was formerly known as Melco Crown Entertainment Limited and changed its name to Melco Resorts & Entertainment Limited in April 2017. Melco Resorts & Entertainment Limited was incorporated in 2004 and is based in Central, Hong Kong. As of February 16, 2017, Melco Resorts & Entertainment Limited operates as a subsidiary of Melco Leisure and Entertainment Group Limited.

Today's Trend

Melco Resorts & Entertainment Limited (NASDAQ: MLCO) — Shares moved lower today after the company released Q1 results and related corporate actions. Investors are reacting to stronger operating results but also to sizable debt and non-operating costs. Below are the key takeaways that are likely driving the stock.

Q1 operating strength — Total operating revenues rose ~11% year-over-year to about US$1.37B and Adjusted Property EBITDA increased ~12% to US$381M, driven by improved mass-market performance across Macau and Studio City. Melco Resorts Announces Unaudited First Quarter 2026 Earnings
Share buyback — Board approved a new US$500M repurchase program (in addition to the prior program), a shareholder-friendly move that can support EPS and shares over time. Melco Resorts Announces Unaudited First Quarter 2026 Earnings
Mixed EPS/estimate signals — Coverage shows revenue beat but some outlets report varying EPS comparisons versus consensus (market reports differ), creating short-term uncertainty around the earnings takeaway. Melco Resorts (MLCO) Q1 Earnings and Revenues Beat Estimates
IP acquisition announced — Melco agreed to acquire certain trademarks and IP from Melco International for US$375M (US$300M at signing). Strategic for branding but uses cash / increases near-term cash outflows. Melco Resorts Announces Unaudited First Quarter 2026 Earnings
Leverage and interest burden — Total debt remains large (~US$6.67B) and Q1 interest expense was high (about US$111.8M), contributing to ~US$101M of net non‑operating expenses; this elevates sensitivity to rates and cash flow. Melco Resorts Announces Unaudited First Quarter 2026 Earnings
Regional travel headwinds — City of Dreams Mediterranean and some satellite operations were hit by reduced tourism linked to regional conflicts, pressuring non-gaming revenue and near-term recovery visibility. Melco Resorts Announces Unaudited First Quarter 2026 Earnings

Bottom line for investors: operational momentum (revenue/EBITDA growth and a large buyback) supports the bull case, but elevated debt/interest costs and regional tourism risks may pressure near-term valuation — a likely reason for the stock trading down today.

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Melco Resorts & Entertainment (MLCO)

About Melco Resorts & Entertainment

Today's Trend

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