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MGM Resorts (MGM) Q3 Earnings Miss Estimates, Revenues Top
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MGM Resorts International (MGM - Free Report) reported mixed third-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top line rose year over year, while the bottom line declined from the prior-year quarter's figure.
Bill Hornbuckle, CEO and president of MGM Resorts International, stated, "Our outlook remains promising, with continued progress in our operations with BetMGM and development initiatives in New York and Japan as well as strong bookings into 2023 in our domestic operations. We remain focused on achieving our vision to be the world's premier gaming entertainment company."
Earnings & Revenue Discussion
MGM Resorts reported an adjusted loss per share of $1.39, missing the Zacks Consensus Estimate of earnings of 22 cents. In the prior-year quarter, the company reported adjusted earnings per share (EPS) of 3 cents.
MGM Resorts International Price, Consensus and EPS Surprise
Total revenues were $3,416.1 million, surpassing the Zacks Consensus Estimate of $3,259 million. The top line increased 26.2% from $2,707.5 million reported in the year-ago period. The upside was primarily driven by the rise in Casino, BetMGM and other sports betting and iGaming revenues.
MGM China
MGM China's net revenues fell 69.7% year over year to $87.5 million. The downside was mainly due to COVID-19-related property closures and restrictions. VIP Table Games turnover declined 82% year over year to $328 million. MGM China casino revenues decreased 72% year over year to $70 million.
MGM China's adjusted property EBITDAR (Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) amounted to ($70) million against the adjusted property EBITDAR of $7 million reported in the prior-year quarter.
Domestic Operations
Net revenues at Las Vegas Strip Resorts during the third quarter were $ 2,301 million, up 66.6% year over year. The company benefitted from increased business volume and travel activity on a year-over-year basis. Also, the addition of The Cosmopolitan and Aria added to the upside.
Adjusted property EBITDAR surged 58.3% year over year to $846.4 million. Casino revenues in the quarter under review were $576 million, up 36% year over year.
During the quarter under review, net revenues from the company's regional operations totaled $973.9 million, up 5.3% from the prior-year quarter. Casino revenues in the quarter came in at $721 million compared with $720 million reported in the prior-year quarter.
Adjusted property EBITDAR was $322 million, down 7.5% year over year. Adjusted property EBITDAR margin contracted 458 basis points year over year to 33.1%.
Balance Sheet & Share Repurchase
MGM Resorts ended the third quarter with cash and cash equivalents of $5,295.4 million compared with $5,784.2 million reported in the previous quarter. The company's long-term debt at the end of the quarter stood at $7,209.8 million, down from $7,107.2 million as of Jun 30, 2022.
During the third quarter, the company repurchased nearly $10 million shares at an average price of $30.69 per share for $307 million. As of Sep 30, the company stated the availability of $827 million under its repurchase program.
The company declared a quarterly cash dividend of 0.25 cents per share. The dividend will be payable on Dec 15, 2022, to shareholders of record as of Dec 9, 2022.
BJ's Wholesale Club sports a Zacks Rank #1. BJ has a trailing four-quarter earnings surprise of 16.5%, on average. The stock has increased 24.4% in the past year.
The Zacks Consensus Estimate for BJ’s 2023 sales and EPS indicates a surge of 14.3% and 10.8%, respectively, from the year-ago period’s reported levels.
Crocs carries a Zacks Rank #2 (Buy). CROX has a long-term earnings growth rate of 15%. Shares of Crocs have plunged 61.4% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 49.8% and 20.9%, respectively, from the year-ago period’s levels.
Boyd Gaming carries a Zacks Rank #2. BYD has a long-term earnings growth rate of 12.8%. The stock has declined 13.3% in the past year.
The Zacks Consensus Estimate for BYD’s 2022 sales and EPS indicates growth of 4.4% and 11.7%, respectively, from the year-ago period’s reported levels.
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MGM Resorts (MGM) Q3 Earnings Miss Estimates, Revenues Top
MGM Resorts International (MGM - Free Report) reported mixed third-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top line rose year over year, while the bottom line declined from the prior-year quarter's figure.
Bill Hornbuckle, CEO and president of MGM Resorts International, stated, "Our outlook remains promising, with continued progress in our operations with BetMGM and development initiatives in New York and Japan as well as strong bookings into 2023 in our domestic operations. We remain focused on achieving our vision to be the world's premier gaming entertainment company."
Earnings & Revenue Discussion
MGM Resorts reported an adjusted loss per share of $1.39, missing the Zacks Consensus Estimate of earnings of 22 cents. In the prior-year quarter, the company reported adjusted earnings per share (EPS) of 3 cents.
MGM Resorts International Price, Consensus and EPS Surprise
MGM Resorts International price-consensus-eps-surprise-chart | MGM Resorts International Quote
Total revenues were $3,416.1 million, surpassing the Zacks Consensus Estimate of $3,259 million. The top line increased 26.2% from $2,707.5 million reported in the year-ago period. The upside was primarily driven by the rise in Casino, BetMGM and other sports betting and iGaming revenues.
MGM China
MGM China's net revenues fell 69.7% year over year to $87.5 million. The downside was mainly due to COVID-19-related property closures and restrictions. VIP Table Games turnover declined 82% year over year to $328 million. MGM China casino revenues decreased 72% year over year to $70 million.
MGM China's adjusted property EBITDAR (Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) amounted to ($70) million against the adjusted property EBITDAR of $7 million reported in the prior-year quarter.
Domestic Operations
Net revenues at Las Vegas Strip Resorts during the third quarter were $ 2,301 million, up 66.6% year over year. The company benefitted from increased business volume and travel activity on a year-over-year basis. Also, the addition of The Cosmopolitan and Aria added to the upside.
Adjusted property EBITDAR surged 58.3% year over year to $846.4 million. Casino revenues in the quarter under review were $576 million, up 36% year over year.
During the quarter under review, net revenues from the company's regional operations totaled $973.9 million, up 5.3% from the prior-year quarter. Casino revenues in the quarter came in at $721 million compared with $720 million reported in the prior-year quarter.
Adjusted property EBITDAR was $322 million, down 7.5% year over year. Adjusted property EBITDAR margin contracted 458 basis points year over year to 33.1%.
Balance Sheet & Share Repurchase
MGM Resorts ended the third quarter with cash and cash equivalents of $5,295.4 million compared with $5,784.2 million reported in the previous quarter. The company's long-term debt at the end of the quarter stood at $7,209.8 million, down from $7,107.2 million as of Jun 30, 2022.
During the third quarter, the company repurchased nearly $10 million shares at an average price of $30.69 per share for $307 million. As of Sep 30, the company stated the availability of $827 million under its repurchase program.
The company declared a quarterly cash dividend of 0.25 cents per share. The dividend will be payable on Dec 15, 2022, to shareholders of record as of Dec 9, 2022.
Zacks Rank & Key Picks
MGM Resorts carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) , Crocs, Inc. (CROX - Free Report) and Boyd Gaming Corporation (BYD - Free Report) .
BJ's Wholesale Club sports a Zacks Rank #1. BJ has a trailing four-quarter earnings surprise of 16.5%, on average. The stock has increased 24.4% in the past year.
The Zacks Consensus Estimate for BJ’s 2023 sales and EPS indicates a surge of 14.3% and 10.8%, respectively, from the year-ago period’s reported levels.
Crocs carries a Zacks Rank #2 (Buy). CROX has a long-term earnings growth rate of 15%. Shares of Crocs have plunged 61.4% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 49.8% and 20.9%, respectively, from the year-ago period’s levels.
Boyd Gaming carries a Zacks Rank #2. BYD has a long-term earnings growth rate of 12.8%. The stock has declined 13.3% in the past year.
The Zacks Consensus Estimate for BYD’s 2022 sales and EPS indicates growth of 4.4% and 11.7%, respectively, from the year-ago period’s reported levels.