We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MGM Resorts (MGM) to Divest Gold Strike Tunica Operations
Read MoreHide Full Article
MGM Resorts International (MGM - Free Report) recently reached an agreement with Cherokee Nation Entertainment Gaming Holdings, LLC, a subsidiary of Cherokee Nation Businesses, to sell its operations of Gold Strike Tunica. The deal, which is valued at $450 million in cash, will be closed in the first half of 2023.
Bill Hornbuckle, CEO & president of MGM Resorts, said, “Gold Strike is a wonderful property with a bright future ahead. Strategically, though, we decided to narrow our focus in Mississippi to a single resort – Beau Rivage – and dedicate more of our time and resources towards continuing to drive success at that leading, world-class resort and casino.”
Gold Strike reported a net income of $81.1 million and adjusted property EBITDAR of $115 million for the 12 months ended Dec 31, 2021. Pre-pandemic, Gold Strike reported adjusted property EBITDAR of $67 million in 2019.
Image Source: Zacks Investment Research
Price Performance
Shares of MGM Resorts have fallen 14.9% in the past six months, compared with the industry’s decline of 38.8%.
The company has been benefiting from the pent-up consumer demand, high domestic casino spending and strong international leisure trends. Sports betting and iGaming continues to be major growth driver. Also, emphasis on monetizing its real estate assets and boosting its domestic cash position bode well.
MGM’s dismal performance in Macau has been hurting its results. During first-quarter 2022, the company witnessed a dismal performance in the Macau region due to subdued visitation. During the first quarter, MGM China's net revenues fell 9% year over year to $268 million. The figure fell 63% from 2019 levels. Notwithstanding the easing of certain COVID-19 protective measures by authorities worldwide, certain travel restrictions, quarantine measures, testing requirements and capacity limitations remain in effect at its Macau operations.
The Zacks Consensus Estimate for CVEO’s 2022 sales and earnings per share (EPS) suggests growth of 12.5% and 1,450%, respectively, from the year-ago period’s levels.
Bluegreen Vacations carries a Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has surged 45.4% in the past year.
The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 11.2% and 35.1%, respectively, from the year-ago period’s reported levels.
Funko carries a Zacks Rank #1. FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have declined 7.2% in the past year.
The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 26.8% and 31%, respectively, from the year-ago period’s reported levels.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
MGM Resorts (MGM) to Divest Gold Strike Tunica Operations
MGM Resorts International (MGM - Free Report) recently reached an agreement with Cherokee Nation Entertainment Gaming Holdings, LLC, a subsidiary of Cherokee Nation Businesses, to sell its operations of Gold Strike Tunica. The deal, which is valued at $450 million in cash, will be closed in the first half of 2023.
Bill Hornbuckle, CEO & president of MGM Resorts, said, “Gold Strike is a wonderful property with a bright future ahead. Strategically, though, we decided to narrow our focus in Mississippi to a single resort – Beau Rivage – and dedicate more of our time and resources towards continuing to drive success at that leading, world-class resort and casino.”
Gold Strike reported a net income of $81.1 million and adjusted property EBITDAR of $115 million for the 12 months ended Dec 31, 2021. Pre-pandemic, Gold Strike reported adjusted property EBITDAR of $67 million in 2019.
Image Source: Zacks Investment Research
Price Performance
Shares of MGM Resorts have fallen 14.9% in the past six months, compared with the industry’s decline of 38.8%.
The company has been benefiting from the pent-up consumer demand, high domestic casino spending and strong international leisure trends. Sports betting and iGaming continues to be major growth driver. Also, emphasis on monetizing its real estate assets and boosting its domestic cash position bode well.
MGM’s dismal performance in Macau has been hurting its results. During first-quarter 2022, the company witnessed a dismal performance in the Macau region due to subdued visitation. During the first quarter, MGM China's net revenues fell 9% year over year to $268 million. The figure fell 63% from 2019 levels. Notwithstanding the easing of certain COVID-19 protective measures by authorities worldwide, certain travel restrictions, quarantine measures, testing requirements and capacity limitations remain in effect at its Macau operations.
MGM Resorts carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the Consumer Discretionary sector are Civeo Corporation (CVEO - Free Report) , Bluegreen Vacations Holding Corporation and Funko, Inc. (FNKO - Free Report) .
Civeo sports a Zacks Rank #2 (Buy) at present. The company has a trailing four-quarter earnings surprise of 1,565.1%, on average. Shares of the company have soared 70.6% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CVEO’s 2022 sales and earnings per share (EPS) suggests growth of 12.5% and 1,450%, respectively, from the year-ago period’s levels.
Bluegreen Vacations carries a Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has surged 45.4% in the past year.
The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 11.2% and 35.1%, respectively, from the year-ago period’s reported levels.
Funko carries a Zacks Rank #1. FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have declined 7.2% in the past year.
The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 26.8% and 31%, respectively, from the year-ago period’s reported levels.