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MGM Resorts (MGM) Posts Narrower-than-Expected Loss in Q4
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MGM Resorts International (MGM - Free Report) reported fourth-quarter 2020 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. While the bottom line surpassed the consensus mark for the third straight quarter, the top line beat estimates after missing the same in the preceding six quarters. However, both the metrics declined sharply year over year. Following the results, the company’s shares declined 3.2% in after-hour trading session on Feb 10.
The company’s results were impacted by the coronavirus pandemic. It continues to be hurt by dismal regional operations. CEO and president of MGM Resorts, Bill Hornbuckle said "We remain confident in the long-term recovery of our business. We have strengthened our operational foundation through cost efficiencies that position us for sustainable growth, as solutions to the public health crisis accelerate and restrictions continue to ease."
Earnings & Revenues Discussion
MGM Resorts reported adjusted loss per share of 90 cents, narrower than the Zacks Consensus Estimate of a loss of 96 cents. In the prior-year quarter, the company had reported adjusted earnings per share of 8 cents.
Total revenues were $1,493.5 million, which outpaced the Zacks Consensus Estimate of $1,472 million. However, the top line declined 53% year over year. The downside can primarily be attributed to the temporary closure of certain domestic properties during the quarter, lower business volume, and other restrictions in Macau and domestic market on account of the coronavirus pandemic. Moreover, travel restrictions impacted the company’s performance in the quarter under review.
MGM Resorts International Price, Consensus and EPS Surprise
MGM China’s net revenues slumped 58% year over year to $305 million, due to the coronavirus pandemic. VIP Table Games Hold adjusted MGM China net revenues plunged 57% year over year to $303 million.
MGM China’s adjusted property EBITDAR (Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) declined 78% to $41 million. Moreover, VIP Table Games Hold adjusted MGM China adjusted property EBITDAR fell 76% to $43 million.
Domestic Operations
Net revenues at Las Vegas Strip Resorts during the fourth quarter were $480 million, down 66% year over year on account of the pandemic. Adjusted property EBITDAR declined 86% year over year to $54 million.
During quarter under review, net revenues from the company's regional operations totaled $595 million, down 34% from the prior-year quarter due to the pandemic and related operational restrictions. Adjusted property EBITDAR were $159 million, down 30% year over year. Moreover, adjusted property EBITDAR margin contracted 129 basis points year over year.
Casino revenues in the quarter under review fell 38% year over year at the company's Las Vegas Strip Resorts primarily due to operational and travel restrictions due to the pandemic. Moreover, slots handle declined 41%. Notably, slots handle decreased 29% at its Regional Operations.
Balance Sheet
MGM Resorts ended the fourth quarter with cash and cash equivalents of $5,101.6 million compared with $2,329.6 million on Dec 31, 2019. The company’s long-term debt at the end of quarter stands at $12,376.7 million, compared with $11,168.9 million as of Dec 31, 2019.
Shares of Corsair Gaming have soared 199.5% in the past six months.
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MGM Resorts (MGM) Posts Narrower-than-Expected Loss in Q4
MGM Resorts International (MGM - Free Report) reported fourth-quarter 2020 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. While the bottom line surpassed the consensus mark for the third straight quarter, the top line beat estimates after missing the same in the preceding six quarters. However, both the metrics declined sharply year over year. Following the results, the company’s shares declined 3.2% in after-hour trading session on Feb 10.
The company’s results were impacted by the coronavirus pandemic. It continues to be hurt by dismal regional operations. CEO and president of MGM Resorts, Bill Hornbuckle said "We remain confident in the long-term recovery of our business. We have strengthened our operational foundation through cost efficiencies that position us for sustainable growth, as solutions to the public health crisis accelerate and restrictions continue to ease."
Earnings & Revenues Discussion
MGM Resorts reported adjusted loss per share of 90 cents, narrower than the Zacks Consensus Estimate of a loss of 96 cents. In the prior-year quarter, the company had reported adjusted earnings per share of 8 cents.
Total revenues were $1,493.5 million, which outpaced the Zacks Consensus Estimate of $1,472 million. However, the top line declined 53% year over year. The downside can primarily be attributed to the temporary closure of certain domestic properties during the quarter, lower business volume, and other restrictions in Macau and domestic market on account of the coronavirus pandemic. Moreover, travel restrictions impacted the company’s performance in the quarter under review.
MGM Resorts International Price, Consensus and EPS Surprise
MGM Resorts International price-consensus-eps-surprise-chart | MGM Resorts International Quote
MGM China
MGM China’s net revenues slumped 58% year over year to $305 million, due to the coronavirus pandemic. VIP Table Games Hold adjusted MGM China net revenues plunged 57% year over year to $303 million.
MGM China’s adjusted property EBITDAR (Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) declined 78% to $41 million. Moreover, VIP Table Games Hold adjusted MGM China adjusted property EBITDAR fell 76% to $43 million.
Domestic Operations
Net revenues at Las Vegas Strip Resorts during the fourth quarter were $480 million, down 66% year over year on account of the pandemic. Adjusted property EBITDAR declined 86% year over year to $54 million.
During quarter under review, net revenues from the company's regional operations totaled $595 million, down 34% from the prior-year quarter due to the pandemic and related operational restrictions. Adjusted property EBITDAR were $159 million, down 30% year over year. Moreover, adjusted property EBITDAR margin contracted 129 basis points year over year.
Casino revenues in the quarter under review fell 38% year over year at the company's Las Vegas Strip Resorts primarily due to operational and travel restrictions due to the pandemic. Moreover, slots handle declined 41%. Notably, slots handle decreased 29% at its Regional Operations.
Balance Sheet
MGM Resorts ended the fourth quarter with cash and cash equivalents of $5,101.6 million compared with $2,329.6 million on Dec 31, 2019. The company’s long-term debt at the end of quarter stands at $12,376.7 million, compared with $11,168.9 million as of Dec 31, 2019.
Zacks Rank & a Key Pick
MGM Resorts, which shares space with Las Vegas Sands Corp. (LVS - Free Report) and Wynn Resorts, Limited (WYNN - Free Report) , currently has a Zacks Rank #3 (Hold). A better-ranked stock in the same space includes Corsair Gaming, Inc. (CRSR - Free Report) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Corsair Gaming have soared 199.5% in the past six months.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>