MGM Resorts (MGM) Q1 Earnings & Revenues Beat Estimates
MGM Resorts International MGM is one of the leading companies in the gaming and lodging industry. The company’s properties are well-diversified within United states and Macau, which is the only gambling destination in China.
MGM Resorts’ earnings are benefitting from higher demand at its properties in Las Vegas on the back of improving employment rate trends and increasing tourism numbers in the region. Moreover, diversification of its resort portfolio and non-gaming options bode well.
Notably, gross gaming revenues increased in all the three months of the quarter, thereby continuing the revival in Macau. However, despite significant improvement in the VIP market, the company’s VIP business has been largely struggling. Increased competition from new openings in Cotai may further hamper the company’s market share and business and result in underperformance at MGM China.
Investors should note that the consensus estimate for MGM has been moving slightly upwards over the last 60 days. However, MGM’s earnings have not been strong over the past few quarters. The company posted negative earnings surprises in one of the last four quarters, with an average miss of 10.79%.
MGM currently has a Zacks Rank #2 (Buy) but that could change following MGM Resorts’ earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MGM posted adjusted earnings of 34 cents per share, beating the consensus mark of 31 cents.
Revenues: MGM reported revenues of $2.82 billion. This marginally surpassed the consensus estimate of $2.80 billion.
Key Stats to Note: In the first quarter of 2018, net revenues at the company's domestic resorts decreased 1% year over year.
Stock Price Impact: At the time of writing, the stock price of MGM Resorts was down nearly 6.6% during pre-market trading hours following the earnings release.
MGM Resorts International Price, Consensus and EPS Surprise
MGM Resorts International Price, Consensus and EPS Surprise | MGM Resorts International Quote
Check back later for our full write up on this MGM earnings report!
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