MGM Resorts Earnings Cheat Sheet: After Three Quarters of Losses, Back to Profitability

MGM Resorts International (NYSE:MGM) climbed to a profit in the second quarter. MGM Resorts International is a holding company, which through its wholly-owned subsidiaries, owns and/or operates casino resorts.

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MGM Resorts International Earnings Cheat Sheet for the Second Quarter

Results: Swung to a profit of $3.45 billion ($6.22 per diluted share) in the quarter. The company had a net loss in the year earlier quarter.

Revenue: Rose 17.1% to $1.8 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: The mean analyst estimate for MGM was a loss of 13 cents per share. It beat the average revenue estimate of $1.59 billion.

Quoting Management: “We have shown growth in year over year cash flows throughout the first half and expect those trends will continue. We believe the foundation of the Las Vegas recovery is solid and our business is building,” said Jim Murren, MGM Resorts International Chairman and CEO. “MGM Macau had another record quarter and the acquisition of a controlling interest in MGM China marks an important step in expanding our global operations and profitability.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 3.3% to $1.5 billion in the first quarter. The figure rose 1% in the fourth quarter of the last fiscal year from the year earlier and climbed 1.6% in the third quarter of the last fiscal year from the year-ago quarter.

MGM’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $89.9 million in the first quarter, a loss of $139.2 million in the fourth quarter of the last fiscal year and a loss of $318 million in the third of the last fiscal year.

Competitors to Watch: Las Vegas Sands Corp. (NYSE:LVS), Wynn Resorts, Limited (NASDAQ:WYNN), Melco Crown Entertainment Ltd (NASDAQ:MPEL), Boyd Gaming Corporation (NYSE:BYD), Century Casinos, Inc. (NASDAQ:CNTY), Ameristar Casinos, Inc. (NASDAQ:ASCA), and Monarch Casino & Resort, Inc. (NASDAQ:MCRI).

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(Source: Xignite Financials)

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