MGM Resorts International Earnings: Misses Street Estimates as Loss Worsens
MGM Resorts International (NYSE:MGM) reported its results for the first quarter. 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 First Quarter
Results: Loss widened to $217.3 million (44 cents per diluted share) from $89.9 million (loss of 18 cents per share) in the same quarter a year earlier.
Revenue: Rose 51.2% to $2.29 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 16 cents per share. Analysts were expecting revenue of $2.26 billion.
Quoting Management: “We continue to see growth across our domestic business fundamentals with revenues, casino volumes, REVPAR and Adjusted EBITDA all increasing year over year, while MGM China continues to report strong results,” said Jim Murren, MGM Resorts International Chairman and CEO. “Our forward booking pace remains strong, M life is further enhancing its capabilities, we continue to focus on online and social media initiatives, and are finalizing our build out for MGM Macau and our future Cotai plans.”
The company has now fallen short of estimates in the last two quarters. In the fourth quarter of the last fiscal year, it missed expectations by 3 cents with a loss of 21 cents versus a mean estimate of a loss of 18 cents per share.
Looking Forward: The average estimate for the second quarter is down from a loss of 9 cents per share ninety days ago to a loss of 11 cents, indicating that analysts are increasingly pessimistic about the company’s next quarter performance. For the fiscal year, the average estimate has moved from a loss of 40 cents a share to a loss of 46 cents over the last ninety days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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