A month has gone by since the last earnings report for MGM Resorts (MGM Quick QuoteMGM - Free Report) . Shares have added about 0.1% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is MGM due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

MGM Resorts Q4 Earnings & Revenues Top Estimates

MGM Resorts reported impressive fourth-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both metrics beat the consensus estimate for the fifth consecutive quarter and increased on a year-over-year basis.

Furthermore, the company disclosed that a significant portion of its revenue was attributed to its Las Vegas resorts, which saw heightened exposure due to major sporting events such as the Las Vegas Grand Prix Formula One race.

Earnings & Revenue Discussion

MGM Resorts reported earnings per share (EPS) of $1.06, outpacing the Zacks Consensus Estimate of 67 cents. In the prior-year quarter, it incurred an adjusted loss per share of $1.54.

Total revenues were $4,375.6 million, outshining the Zacks Consensus Estimate of $4,094 million by 3.3%. The top line improved 22% year over year on the back of a rise in revenues at MGM China following the removal of COVID-19-related entry restrictions in Macau. This was marginally offset by a decline in casino revenues at Regional operations and the dispositions of The Mirage and Gold Strike Tunica.

MGM China

During the fourth quarter, MGM China's net revenues surged 462% year over year to $983 million. The upside was attributed to the removal of COVID-19-related travel restrictions in Macau and an increase in visitation. MGM China casino revenues were up 485% year over year to $849 million.
MGM China's adjusted property earnings before interest, taxes, depreciation, amortization and restructuring or rent costs (EBITDAR) amounted to $262 million compared with ($55) million in the prior-year quarter.

Domestic Operations

Net revenues at Las Vegas Strip Resorts were $2.4 billion, up 3% year over year, primarily driven by a rise in ADR.

Adjusted property EBITDAR declined 1% year over year to $864 million. Casino revenues were $589 million, up 6% year over year.

Net revenues from Regional operations totaled $873 million, down 12% year over year. The main factor behind this was a decline in casino revenues, partly linked to the impacts of a union strike at MGM Grand Detroit, reduced high-end table activity at MGM National Harbor and the sale of Gold Strike Tunica.

Adjusted property EBITDAR was $233 million, down 27% year over year. Adjusted property EBITDAR margin contracted 555 basis points year over year to 26.7%.

Balance Sheet & Share Repurchase

MGM Resorts ended the fourth quarter with cash and cash equivalents of $2.93 billion compared with $5.91 billion at 2022-end. Long-term debt at the end of the quarter was $6.34 billion, down from $7.43 billion at 2022-end.

During the fourth quarter of 2023, MGM repurchased nearly 15 million shares for an aggregate of $629 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month.

VGM Scores

At this time, MGM has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

MGM has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.