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MGM Resorts International (MGM - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
During the quarter, the company exhibited strong financial performance and growth, setting a record for MGM China Adjusted Property EBITDAR. Also, it stated the benefits of Las Vegas expansion and strategic partnership with Marriott. MGM’s meetings and convention business witnessed improvement, supported by the remodel of Mandalay Bay.
In terms of international digital strategy, the company reported significant advancements, including an in-house sports product and live dealer capabilities for online gaming offerings. Given the strategic initiatives and significant progress, management is optimistic and anticipates the momentum to continue for the remainder of 2024.
Earnings & Revenue Discussion
MGM Resorts International Price, Consensus and EPS Surprise
MGM Resorts reported earnings per share (EPS) of 86 cents, outpacing the Zacks Consensus Estimate of 66 cents. In the prior-year quarter, it incurred an adjusted EPS of 59 cents.
Total revenues were $4.33 billion, surpassing the Zacks Consensus Estimate of $4.18 billion by 3.6%. The top line increased 9.8% year over year on the back of strong contributions from MGM China.
MGM China
During the second quarter, MGM China's net revenues surged 37% year over year to $1.02 billion. The upside can be attributed to the ramp-up of operations following the removal of COVID-19-related travel and entry restrictions in first-quarter 2023. MGM China casino revenues were up 33% year over year to $891 million.
MGM China's adjusted property earnings before interest, taxes, depreciation, amortization and restructuring or rent costs (EBITDAR) amounted to $294 million compared with 209 million reported in the prior-year quarter.
Domestic Operations
Net revenues at Las Vegas Strip Resorts were $2.2 billion, up 2.7% year over year. The upside was primarily driven by a rise in rooms, catering and banquets revenues.
Adjusted property EBITDAR increased 1% year over year to $782 million. Casino revenues were $485 million, down 2% year over year.
Net revenues from Regional operations totaled $927 million, almost flat year over year. Adjusted property EBITDAR was $288 million, down 2% from $294 reported in the prior year quarter.
Balance Sheet & Share Repurchase
MGM Resorts ended the second quarter with cash and cash equivalents of $2.41 billion compared with $2.93 billion at 2023-end. Long-term debt at the end of the quarter was $6.29 billion, down from $6.34 billion at 2023-end.
During second-quarter 2024, MGM repurchased nearly 10 million shares for an aggregate of $413 million. As of Jun 30, 2024, the company stated availability of approximately $1.3 billion under its share repurchase program.
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily backed by sustained demand strength and increased booking volumes. The management expects net yields to exceed 10% and drive double-digit returns on invested capital.
The quarter’s passenger ticket revenues amounted to $3.8 billion, up from $3.1 billion reported in the prior-year quarter. CCL reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in price and occupancy. It reported strength in pricing for the North America and Australia and Europe segments for the third and the fourth quarter of 2024 on a year-over-year basis. Its efforts to extend the booking curve and leverage favorable pricing trends resulted in record cumulative bookings for the remainder of 2024, with occupancy rates above 2023 levels.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position to execute its strategy to expand its IP-driven toy business and expand entertainment offerings. For 2024, management continues to expect net sales to be comparable with the prior year’s levels at cc. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, missing the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. The bottom line was negatively impacted by the amortization of tariff and freight costs, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in the fiscal 2022.
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MGM Resorts' (MGM) Q2 Earnings & Revenues Surpass Estimates
MGM Resorts International (MGM - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
During the quarter, the company exhibited strong financial performance and growth, setting a record for MGM China Adjusted Property EBITDAR. Also, it stated the benefits of Las Vegas expansion and strategic partnership with Marriott. MGM’s meetings and convention business witnessed improvement, supported by the remodel of Mandalay Bay.
In terms of international digital strategy, the company reported significant advancements, including an in-house sports product and live dealer capabilities for online gaming offerings. Given the strategic initiatives and significant progress, management is optimistic and anticipates the momentum to continue for the remainder of 2024.
Earnings & Revenue Discussion
MGM Resorts International Price, Consensus and EPS Surprise
MGM Resorts International price-consensus-eps-surprise-chart | MGM Resorts International Quote
MGM Resorts reported earnings per share (EPS) of 86 cents, outpacing the Zacks Consensus Estimate of 66 cents. In the prior-year quarter, it incurred an adjusted EPS of 59 cents.
Total revenues were $4.33 billion, surpassing the Zacks Consensus Estimate of $4.18 billion by 3.6%. The top line increased 9.8% year over year on the back of strong contributions from MGM China.
MGM China
During the second quarter, MGM China's net revenues surged 37% year over year to $1.02 billion. The upside can be attributed to the ramp-up of operations following the removal of COVID-19-related travel and entry restrictions in first-quarter 2023. MGM China casino revenues were up 33% year over year to $891 million.
MGM China's adjusted property earnings before interest, taxes, depreciation, amortization and restructuring or rent costs (EBITDAR) amounted to $294 million compared with 209 million reported in the prior-year quarter.
Domestic Operations
Net revenues at Las Vegas Strip Resorts were $2.2 billion, up 2.7% year over year. The upside was primarily driven by a rise in rooms, catering and banquets revenues.
Adjusted property EBITDAR increased 1% year over year to $782 million. Casino revenues were $485 million, down 2% year over year.
Net revenues from Regional operations totaled $927 million, almost flat year over year. Adjusted property EBITDAR was $288 million, down 2% from $294 reported in the prior year quarter.
Balance Sheet & Share Repurchase
MGM Resorts ended the second quarter with cash and cash equivalents of $2.41 billion compared with $2.93 billion at 2023-end. Long-term debt at the end of the quarter was $6.29 billion, down from $6.34 billion at 2023-end.
During second-quarter 2024, MGM repurchased nearly 10 million shares for an aggregate of $413 million. As of Jun 30, 2024, the company stated availability of approximately $1.3 billion under its share repurchase program.
Zacks Rank
MGM currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Consumer Discretionary Releases
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily backed by sustained demand strength and increased booking volumes. The management expects net yields to exceed 10% and drive double-digit returns on invested capital.
The quarter’s passenger ticket revenues amounted to $3.8 billion, up from $3.1 billion reported in the prior-year quarter. CCL reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in price and occupancy. It reported strength in pricing for the North America and Australia and Europe segments for the third and the fourth quarter of 2024 on a year-over-year basis. Its efforts to extend the booking curve and leverage favorable pricing trends resulted in record cumulative bookings for the remainder of 2024, with occupancy rates above 2023 levels.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position to execute its strategy to expand its IP-driven toy business and expand entertainment offerings. For 2024, management continues to expect net sales to be comparable with the prior year’s levels at cc. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, missing the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. The bottom line was negatively impacted by the amortization of tariff and freight costs, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in the fiscal 2022.