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MGM Resorts International (MGM - Free Report) is one of the leading companies in the gaming and lodging industry. The company’s properties are well-diversified within U.S. 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. Particularly, the opening of MGM National Harbor, a casino resort, on Dec 8, 2016, should drive revenues. Additionally, the company’s profit growth plan is also poised to further boost profits.
MGM Resorts’ revenues, however, have been mostly hurt by its sluggish performance in Macau over the past few quarters. Nevertheless, per the Macau Gaming Inspection and Coordination Bureau, gross gaming revenues (GGR) rose in all the three months of the quarter, thereby continuing the revival in Macau.
Thus, though it seems that the worst is over for Macau’s gambling industry, concerns related to the sustainability of revenues from the VIP market still linger, suggesting that it will take some time for the region to return to its former glory.
Investors should note that the consensus estimate for MGM has been trending 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 159.15%. Meanwhile, revenues have surpassed the Zacks Consensus Estimate in two of the trailing four quarters.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MGM beats on earnings. Our consensus earnings estimate called for earnings per share of 26 cents, and the company reported earnings of 38 cents per share. Investors should note that these figures take out stock option expenses.
Revenues: MGM reported revenues of $2.71 billion. This surpassed our consensus estimate of $2.61 billion.
Key Stats to Note: In the first quarter of 2017, net revenues at the company's wholly owned domestic resorts increased 29% year over year.
Stock Price Impact: At the time of writing, the stock price of MGM Resorts was up over 3% 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 (MGM) Tops Q1 Earnings & Revenue Estimates
MGM Resorts International (MGM - Free Report) is one of the leading companies in the gaming and lodging industry. The company’s properties are well-diversified within U.S. 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. Particularly, the opening of MGM National Harbor, a casino resort, on Dec 8, 2016, should drive revenues. Additionally, the company’s profit growth plan is also poised to further boost profits.
MGM Resorts’ revenues, however, have been mostly hurt by its sluggish performance in Macau over the past few quarters. Nevertheless, per the Macau Gaming Inspection and Coordination Bureau, gross gaming revenues (GGR) rose in all the three months of the quarter, thereby continuing the revival in Macau.
Thus, though it seems that the worst is over for Macau’s gambling industry, concerns related to the sustainability of revenues from the VIP market still linger, suggesting that it will take some time for the region to return to its former glory.
Investors should note that the consensus estimate for MGM has been trending 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 159.15%. Meanwhile, revenues have surpassed the Zacks Consensus Estimate in two 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 #3 (Hold) 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 beats on earnings. Our consensus earnings estimate called for earnings per share of 26 cents, and the company reported earnings of 38 cents per share. Investors should note that these figures take out stock option expenses.
Revenues: MGM reported revenues of $2.71 billion. This surpassed our consensus estimate of $2.61 billion.
Key Stats to Note: In the first quarter of 2017, net revenues at the company's wholly owned domestic resorts increased 29% year over year.
Stock Price Impact: At the time of writing, the stock price of MGM Resorts was up over 3% during pre-market trading hours following the earnings release.
Check back later for our full write up on this MGM earnings report!
Looking for Ideas with Even Greater Upside?
Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>