MGM Resorts International (NYSE: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 downwards over the last 60 days. However, MGM’s earnings have been mostly strong over the past few quarters. In fact, the company posted positive earnings surprises in three of the last four quarters, with an average beat of 161.64%. Meanwhile, revenues too have surpassed the Zacks Consensus Estimate in three of the trailing four quarters.
MGM Resorts International Price and EPS Surprise
MGM Resorts International Price and EPS Surprise | MGM Resorts International Quote
MGM currently has a Zacks Rank #4 (Sell) 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 stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MGM posted adjusted earnings of 33 cents per share, in line with the consensus mark.
Revenues: MGM reported revenues of $2.83 billion. This surpassed our consensus estimate of $2.77 billion.
Key Stats to Note: In the third quarter of 2017, net revenues at the company's wholly owned domestic resorts increased 18% year over year.
Stock Price Impact: At the time of writing, the stock price of MGM Resorts was down nearly 2% during pre-market trading hours following the earnings release.
Check back later for our full write up on this MGM earnings report!
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MGM Resorts International (MGM): Free Stock Analysis Report
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