MGM Resorts International (NYSE:MGM), Nevada's top private employer and operator of prominent Strip properties, has reported a significant resurgence in its Q3 financials, despite a nine-day cyberattack in September that resulted in a $100 million hit to the company's results. The company's CEO, Bill Hornbuckle, announced the robust performance Wednesday, highlighting the outstanding performance of MGM China (OTC:MCHVY) as a key driver of growth.
Hornbuckle reported that MGM Resorts' Q3 revenue surged to $3.973 billion, marking a 16.3% increase from $3.416 billion in Q3 2022. This significant rise was accompanied by a shift from a net loss of $1.961 billion in Q3 2022 to a net income of $211.9 million for Q3 2023. Earnings per share also improved dramatically from a negative $1.45 in the previous year to $0.46 this year.
Despite the cyberattack causing an operational shutdown, MGM Resorts and another major player, Las Vegas Sands (NYSE:LVS) Corp, are witnessing growth due to the post-pandemic travel rebound in China and Macau. In particular, MGM China's exceptional performance led to a 2.6% rise in the share price to $39.61 after the bell today.
In addition to these financial results, Hornbuckle also hinted at an imminent contract settlement with the Culinary union. This comes as approximately 35,000 Las Vegas hospitality workers from MGM and Wynn Resorts (NASDAQ:WYNN) are prepared to strike on November 10 without a labor contract.
MGM Resorts also revealed that it repurchased shares worth $572 million during the quarter as part of a new $2 billion share buyback plan authorized by the board. This move has contributed to the company's strong recovery post-September's cyberattack.
London Stock Exchange Group (LON:LSEG) data and analysts’ average estimate indicate that MGM's total revenue escalated by 16% to $3.97 billion in the quarter through September, with an adjusted profit of 64 cents per share surpassing the expected 49 cents.
Despite challenges like a September cyberattack and the sale of The Mirage and Gold Strike Tunica, revenues grew 16% YoY to $3.97 billion, surpassing the consensus of $3.86 billion. A key driver was the recovery and jump in visitations to MGM China. MGM's stock has gained 16.1% YTD.
Following these results, Deutsche Bank analysts reiterated a Buy rating on MGM with a price target of $50. MGM also received a Strong Buy consensus rating on TipRanks, with an average price forecast of $54.89.
The operator of famous Las Vegas properties such as MGM Grand and Bellagio, MGM Resorts International has made a strong recovery post-September's cyberattack. The company's Q3 2023 financial report showcases substantial growth, setting it on a path of recovery and growth, despite the challenges posed by the cyberattack.
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