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.
Notably, MGM Resorts earns a better part of its revenues from Macau. 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 sluggish history in earnings season. MGM Resorts has missed earnings results in two of the last four quarters, making for an average negative surprise of 7.92%. Meanwhile, the company has also missed revenue results twice in the trailing four quarters.
Currently, MGM has a Zacks Rank #4 (Sell) 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 beats on adjusted earnings. Our consensus earnings estimate called for earnings per share of 14 cents per share, and the company reported adjusted earnings per share of 26 cent instead. Investors should note that these figures take out stock option expenses.
Revenues: MGM reported revenues of $2.33 billion. This missed our consensus estimate of 2.46 billion.
Key Stats to Note: Net revenue at the company's wholly owned domestic resorts increased 0.5% year over year while MGM China’s net revenue declined 33% year over year.
Stock Price: MGM shares were down almost 3.5% ahead of the report, but are down nearly 2.8% now following the release.
Check back later for our full write up on this MGM earnings report later!
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