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MGM Resorts International (MGM - Free Report) reported break-even earnings in the fourth quarter of 2017. The Zacks Consensus Estimate was pegged at earnings of 7 cents. The company posted earnings of 11 cents in the prior-year quarter.
Total revenues of $2.6 billion surpassed the Zacks Consensus Estimate of $2.5 billion by 4% and increased 5.5% year over year. The improvement was backed by higher revenues in MGM China and at the company's domestic resorts.
MGM China
MGM China’s net sales increased 10% year over year to $549 million, courtesy of higher revenues from main-floor table games. Main-floor table games revenues increased 21%, owing to a 10% rise in volume and year-over-year hold percentage increase of 200 basis points (bps) to 21%.
However, VIP table games revenues suffered a fall of 5%, in spite of a turnover increase of 23% in the quarter. Hold percentage declined 60 bps year over year to 3.1%.
MGM China’s adjusted EBITDA (earnings before interest, taxes, and amortization) increased 7% to $147 million.
Domestic Operations
MGM Resorts owns and operates several properties in Las Vegas. Apart from this, it owns a number of assets in Mississippi and Michigan.
Net revenues of $1.9 billion in the company's domestic resorts increased 5% from the prior-year quarter. Notably, casino revenues rose 13% owing to the opening of MGM National Harbor in December 2016.
Room revenues fell 5%. While Las Vegas Strip RevPAR (Revenue per Available Room) decreased 4% in the quarter, average daily rate (ADR) remained flat. However, occupancy dipped 4%.
Operating income at the company's wholly owned domestic resorts deteriorated 2% to $305 million. Also, adjusted EBITDA inched up 1% to $496 million owing to operations at MGM National Harbor.
Income From Unconsolidated Affiliates – CityCenter Holdings
MGM’s urban complex, CityCenter (located in Las Vegas, with 50% stakes owned by the company), operates through two segments — Resort and Residential. Currently, the company has three properties — Aria, Vdara and Mandarin Oriental — under the Resort operations.
Net revenues from CityCenter rose 1% year over year to nearly $306 million on the back of an increase in food and beverage revenues.
Adjusted EBITDA was also up 7% to $97 million.
MGM Resorts International Price, Consensus and EPS Surprise
MGM Resorts ended the quarter with cash and cash investments of $1.5 billion as of Dec 31, 2017, compared with $1.4 billion as of Dec 31, 2016.
The company returned $580 million to shareholders through buybacks and dividends during 2017.
On Feb 19, the company approved a 9% hike in the quarterly dividend from $0.11 per share to $0.12 per share totaling $68 million. The dividend will be payable on Mar 15, 2018 to holders of record as of Mar 9.
A few other top-ranked stocks in the hotel space include Choice Hotels (CHH - Free Report) , Hilton (HLT - Free Report) and Marriott (MAR - Free Report) , each carrying a Zacks Rank #2.
Choice Hotels, Hilton and Marriott’s earnings for 2018 are projected to increase 20%, 32% and 18.4% respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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MGM Resorts' (MGM) Q4 Earnings Break Even, Revenues Beat
MGM Resorts International (MGM - Free Report) reported break-even earnings in the fourth quarter of 2017. The Zacks Consensus Estimate was pegged at earnings of 7 cents. The company posted earnings of 11 cents in the prior-year quarter.
Total revenues of $2.6 billion surpassed the Zacks Consensus Estimate of $2.5 billion by 4% and increased 5.5% year over year. The improvement was backed by higher revenues in MGM China and at the company's domestic resorts.
MGM China
MGM China’s net sales increased 10% year over year to $549 million, courtesy of higher revenues from main-floor table games.
Main-floor table games revenues increased 21%, owing to a 10% rise in volume and year-over-year hold percentage increase of 200 basis points (bps) to 21%.
However, VIP table games revenues suffered a fall of 5%, in spite of a turnover increase of 23% in the quarter. Hold percentage declined 60 bps year over year to 3.1%.
MGM China’s adjusted EBITDA (earnings before interest, taxes, and amortization) increased 7% to $147 million.
Domestic Operations
MGM Resorts owns and operates several properties in Las Vegas. Apart from this, it owns a number of assets in Mississippi and Michigan.
Net revenues of $1.9 billion in the company's domestic resorts increased 5% from the prior-year quarter. Notably, casino revenues rose 13% owing to the opening of MGM National Harbor in December 2016.
Room revenues fell 5%. While Las Vegas Strip RevPAR (Revenue per Available Room) decreased 4% in the quarter, average daily rate (ADR) remained flat. However, occupancy dipped 4%.
Operating income at the company's wholly owned domestic resorts deteriorated 2% to $305 million. Also, adjusted EBITDA inched up 1% to $496 million owing to operations at MGM National Harbor.
Income From Unconsolidated Affiliates – CityCenter Holdings
MGM’s urban complex, CityCenter (located in Las Vegas, with 50% stakes owned by the company), operates through two segments — Resort and Residential. Currently, the company has three properties — Aria, Vdara and Mandarin Oriental — under the Resort operations.
Net revenues from CityCenter rose 1% year over year to nearly $306 million on the back of an increase in food and beverage revenues.
Adjusted EBITDA was also up 7% to $97 million.
MGM Resorts International Price, Consensus and EPS Surprise
MGM Resorts International Price, Consensus and EPS Surprise | MGM Resorts International Quote
Balance Sheet
MGM Resorts ended the quarter with cash and cash investments of $1.5 billion as of Dec 31, 2017, compared with $1.4 billion as of Dec 31, 2016.
The company returned $580 million to shareholders through buybacks and dividends during 2017.
On Feb 19, the company approved a 9% hike in the quarterly dividend from $0.11 per share to $0.12 per share totaling $68 million. The dividend will be payable on Mar 15, 2018 to holders of record as of Mar 9.
Zacks Rank & Other Stocks to Consider
MGM Resorts carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few other top-ranked stocks in the hotel space include Choice Hotels (CHH - Free Report) , Hilton (HLT - Free Report) and Marriott (MAR - Free Report) , each carrying a Zacks Rank #2.
Choice Hotels, Hilton and Marriott’s earnings for 2018 are projected to increase 20%, 32% and 18.4% respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>