MGM Resorts International Earnings Cheat Sheet: Loss Narrows

MGM Resorts International’s (NYSE:MGM) third quarter loss narrowed due mainly to positive revenue growth. MGM Resorts International is a holding company which, through its wholly-owned subsidiaries, owns and operates casino resorts.

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MGM Resorts International Earnings Cheat Sheet for the Third Quarter

Results: Loss narrowed to $123.8 million (loss of 25 cents per diluted share) from $318 million (loss of 72 cents per share) in the same quarter a year earlier.

Revenue: Rose 41.2% to $2.2 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MGM reported an adjusted net loss of 14 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 15 cents per share. Analysts were expecting revenue of $2.22 billion.

Quoting Management: “Our results show the inherent operating leverage in our business as this quarter represents the third consecutive quarter of year-over-year revenue, Adjusted Property EBITDA and Adjusted Property EBITDA margin growth for our wholly owned domestic resorts. Our forward booking trends remain strong both for our consumer retail segments and corporate events,” said Jim Murren, MGM Resorts International Chairman and CEO. “MGM China’s operating trends continue to improve with cash flow before branding fees increasing approximately 80% year-over-year. We are extremely pleased with our Cotai development plans while at the same time have some exciting expansion opportunities within our existing MGM Macau property.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the second quarter, by 3 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 17.4% to $1.81 billion in the second quarter. The figure rose 3.3% in the first quarter from the year earlier and climbed 1% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts seem more negative about the company’s results for the next quarter than two months ago. The average estimate for the fourth quarter has moved from a loss of 14 cents a share to a loss of 17 cents over the last sixty days. The average estimate for the fiscal year is now 53 cents per share, a rise from the 59 cents predicted ninety days ago.

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), Trans World Corporation (TWOC), Century Casinos, Inc. (NASDAQ:CNTY), Riviera Holdings Corp. (RVHLQ), Archon Corporation (ARHND), Ameristar Casinos, Inc. (NASDAQ:ASCA), and Monarch Casino & Resort, Inc. (NASDAQ:MCRI).

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(Source: Xignite Financials)