MGM Resorts' (MGM) Q3 Earnings & Revenues Top, Stock Up
MGM Resorts International MGM reported impressive third-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both metrics beat the consensus estimate for the fourth consecutive quarter. The top and bottom lines increased on a year-over-year basis. Following the results, the stock rose 2.5% in the after-hour trading session on Nov 8.
Earnings & Revenue Discussion
MGM Resorts reported earnings per share (EPS) of 64 cents, outpacing the Zacks Consensus Estimate of 55 cents. In the prior-year quarter, it incurred adjusted loss per share of $1.39.
Total revenues were $3,973.2 million, outshining the Zacks Consensus Estimate of $3,846 million by 3.3%. The top line improved 16% year over year on the back of a rise in revenues at MGM China following the removal of COVID-19-related entry restrictions in Macau. This was marginally offset by a decline in revenues at MGM’s Las Vegas Strip Resorts and Regional operations due to dispositions of The Mirage and Gold Strike Tunica as well as the cybersecurity issue in September 2023.
MGM China
During the third quarter, MGM China's net revenues surged 829% year over year to $813 million. The upside was attributed to the removal of COVID-19-related travel restrictions in Macau and an increase in visitation. Our model predicted the metric to jump 791.2% year over year. MGM China casino revenues were up 915% year over year to $714 million.
MGM China's adjusted property earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) amounted to $226 million compared with ($70) million in the prior-year quarter.
MGM Resorts International Price, Consensus and EPS Surprise
MGM Resorts International price-consensus-eps-surprise-chart | MGM Resorts International Quote
Domestic Operations
Net revenues at Las Vegas Strip Resorts were $2.1 billion, down 8% year over year. Our model suggested the metric to fall 12.5% year over year.
Adjusted property EBITDAR plunged 16% year over year to $714 million. Casino revenues were $546 million, down 5% year over year.
Net revenues from Regional operations totaled $925 million, down 5% from the prior-year levels. This was primarily caused by the dispositions of The Mirage and Gold Strike Tunica as well as the cybersecurity issue in September 2023. We predicted the metric to decrease 16% year over year. Casino revenues of $679 million tumbled 7% from prior-year actuals.
Adjusted property EBITDAR was $293 million, down 9% from the prior-year quarter. Adjusted property EBITDAR margin contracted 140 basis points year over year to 31.7%.
Balance Sheet & Share Repurchase
MGM Resorts ended the third quarter with cash and cash equivalents of $3,316.4 million compared with $5,911.9 million in 2022 end. Long-term debt at the end of the quarter was $6,505.5 million, down from $7,432.8 million at 2022 end.
During the third quarter of 2023, MGM repurchased nearly 13 million shares for an aggregate of $572 million. As of Sep 30, the company stated the availability of $806 million under its February 2023 repurchase program.
Zacks Rank
MGM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
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During third-quarter 2023, LVS reported adjusted EPS of 55 cents, beating the Zacks Consensus Estimate of 53 cents by 3.8%. In the year-ago quarter, it incurred adjusted loss of 27 cents per share.
Boyd Gaming Corporation BYD reported mixed third-quarter 2023 results, with earnings missing the Zacks Consensus Estimate and revenues outpacing the same. While the top line rose year over year, the bottom line declined from the prior-year levels.
In the quarter under review, adjusted EPS of $1.36 missed the Zacks Consensus Estimate of $1.44 by 5.6%. In the prior-year quarter, BYD reported adjusted EPS of $1.48.
Caesars Entertainment, Inc. CZR reported impressive third-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Also, the top and bottom lines improved on a year-over-year basis.
During the quarter, CZR recorded adjusted EPS of 34 cents, outshining the Zacks Consensus Estimate of 27 cents by 25.9%. In the prior-year quarter, it reported an adjusted EPS of 24 cents.
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