MGM Resorts International Earnings: Loss Narrows but Misses Estimates
Helped by revenue growth, MGM Resorts International (NYSE:MGM) narrowed its loss in the fourth quarter. MGM Resorts International is a holding company which, through its wholly-owned subsidiaries, owns and operates casino resorts.
Investing Insights: Warren Buffett Trashes Gold, But What About Silver?
MGM Resorts International Earnings Cheat Sheet for the Fourth Quarter
Results: Loss narrowed to $113.7 million (loss of 23 cents per diluted share) from $139.2 million (loss of 29 cents per share) in the same quarter a year earlier.
Revenue: Rose 55.7% to $2.3 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: MGM Resorts International fell short of the mean analyst estimate of a loss of 19 cents per share. It beat the average revenue estimate of $2.17 billion.
Quoting Management: “2011 was a year in which we achieved many goals: operationally, strategically, and financially. Operationally, we enhanced our customer experience through targeted reinvestment in our properties and improved relationships through our M life customer loyalty program. Strategically, we acquired a majority interest in MGM China and began expanding our brand presence in key markets throughout the world, particularly Asia. Financially, our revenues and margins have improved year over year increasing our cash flow and strengthening our financial profile,” said Jim Murren, MGM Resorts International Chairman and CEO. “Going forward we expect to build off of these strategies to grow our company and maximize shareholder value.”
The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by one cent, and in the second quarter, it was ahead by 5 cents.
Looking Forward: Analysts seem more positive about the company’s results for the next quarter than sixty days ago. The average estimate for the first quarter of the next fiscal year has moved from a loss of 15 cents a share to a loss of 13 cents over the last sixty days. For the fiscal year, the average estimate has moved from a loss of 55 cents a share to a loss of 53 cents over the last sixty days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories:
To contact the reporter on this story: Derek Hoffman at firstname.lastname@example.org
To contact the editor responsible for this story: Damien Hoffman at email@example.com