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Why Is MGM (MGM) Up 0.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for MGM Resorts (MGM - Free Report) . Shares have added about 0.3% 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 drivers.
MGM Resorts 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 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 the first quarter of 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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted -6.84% due to these changes.
VGM Scores
At this time, MGM has an average Growth Score of C, though it is lagging a bit 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
MGM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
MGM belongs to the Zacks Gaming industry. Another stock from the same industry, International Game Technology (IGT - Free Report) , has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
IGT reported revenues of $1.05 billion in the last reported quarter, representing a year-over-year change of -0.6%. EPS of $0.36 for the same period compares with $0.45 a year ago.
For the current quarter, IGT is expected to post earnings of $0.30 per share, indicating a change of -42.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.6% over the last 30 days.
IGT has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is MGM (MGM) Up 0.3% Since Last Earnings Report?
It has been about a month since the last earnings report for MGM Resorts (MGM - Free Report) . Shares have added about 0.3% 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 drivers.
MGM Resorts Q2 Earnings & Revenues Surpass Estimates
MGM Resorts 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 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 the first quarter of 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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted -6.84% due to these changes.
VGM Scores
At this time, MGM has an average Growth Score of C, though it is lagging a bit 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
MGM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
MGM belongs to the Zacks Gaming industry. Another stock from the same industry, International Game Technology (IGT - Free Report) , has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
IGT reported revenues of $1.05 billion in the last reported quarter, representing a year-over-year change of -0.6%. EPS of $0.36 for the same period compares with $0.45 a year ago.
For the current quarter, IGT is expected to post earnings of $0.30 per share, indicating a change of -42.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.6% over the last 30 days.
IGT has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.