MGM Resorts (MGM) Beats on Q2 Earnings & Revenues - Tale of the Tape
MGM Resorts International (MGM) is one of the leading companies in the gaming and lodging industry. The company’s properties are well-diversified within U.S. and Macau, the only gambling destination in China. MGM Resorts is also progressing with its casino-hotel development project in Cotai, Macau which is scheduled to open in 2016.
Macau is a key operating region for MGM Resorts. However, gambling revenues in Macau have been sluggish over the past few quarters due to anti-graft corruption drive undertaken by the Chinese government.
Investors should also note the recent earnings estimate revisions for MGM, as the consensus estimate has been almost moving downwards. Meanwhile, MGM has a mixed history in earnings season. MGM Resorts has missed earnings results in two of the last four quarters, making for an average negative surprise of 13.99%. Meanwhile, the company has also missed revenue results in three of the trailing four quarters.
Currently, MGM has a Zacks Rank #3 (Hold) but that could change following MGM Resorts’ earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings : MGM beat on adjusted earnings. Our consensus earnings estimate called for earnings per share of 11 cents, and the company reported earnings per share of 17 cents (includes pre-opening and start-up expenses) instead.
Revenues : MGM reported revenues of $2.39 billion. This beat our consensus estimate of 2.37 billion.
Key Stats to Note: Net revenue at the company's wholly owned domestic resorts increased 4% year over year while MGM China’s net revenue declined 39% year over year. Adjusted Property EBITDA went up 11% year over year.
The company announced a Profit Growth Plan that began in July and is expected to increase adjusted EBITDA by $300 million on an annual basis.
Check back later for our full write up on this MGM earnings report later!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MGM RESORTS INT (MGM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
