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MGM Resorts' (MGM) Q3 Earnings Meet Estimates, Revenues Beat

MGM Resorts International MGM posted adjusted earnings of 33 cents per share, which came in line with the Zacks Consensus Estimate. However, the bottom-line declined 43.1% on a year-over-year basis.

Total revenues of $2.83 billion surpassed the Zacks Consensus Estimate of $2.77 billion by nearly 2% and increased 12.4% year over year. This improvement reflects a significant rise in revenues from the company’s Las Vegas operations, partially offset by weak results at MGM China.

MGM China

MGM China’s net sales fell 6% year over year to $471 million due to lower revenues from main-floor table games and VIP gamblers.

Main-floor table games revenues decreased 11%, given a 3% decline in volume and hold percentage decrease of 170 basis points (bps) year over year to 18.4%.

Moreover, VIP table games revenues witnessed a fall of 3% as turnover declined 6% in the quarter. However, hold percentage increased 30 bps year over year to 3.3%.

MGM China’s adjusted EBITDA (earnings before interest, taxes, and amortization) decreased 21% to $118 million.

Domestic Operations

MGM Resorts owns and operates several properties in Las Vegas. Apart from this, it owns a number of assets in Mississippi and Michigan.

Net revenues of $2.2 billion at the company's domestic resorts increased 18% over the prior-year quarter. Notably, casino revenues from wholly owned domestic resorts surged a significant 32% owing to the acquisition of Borgata Hotel Casino and Spa in August 2016 and opening of MGM National Harbor in December 2016.

Room revenues also climbed 7%. While, Las Vegas Strip RevPAR (Revenue per Available Room) rose 4% in the quarter, average daily rate (ADR) improved 5.8%. However, occupancy dipped 2.1%.

Operating income at the company's wholly owned domestic resorts soared 81.4% to $546 million. Also, adjusted EBITDA increased 25% to $714 million.

Income From Unconsolidated Affiliates – CityCenter Holdings

MGM’s urban complex, CityCenter (located in Las Vegas, with 50% owned by the company), operates through two segments, Resort and Residential. Currently, the company has three properties namely Aria, Vdara and Mandarin Oriental under the Resort operations.

Net revenues from CityCenter rose 5% year over year to nearly $322 million on the back of an increase in casino and rooms revenues.

Adjusted EBITDA was also up 17% to $108 million.

MGM Resorts carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MGM Resorts International Price, Consensus and EPS Surprise

 

MGM Resorts International Price, Consensus and EPS Surprise | MGM Resorts International Quote

Peer Releases

Wynn Resorts Ltd. WYNN posted third-quarter 2017 adjusted earnings of $1.52 per share that outpaced the Zacks Consensus Estimate of $1.37 by nearly 11%. Further, the bottom line increased over 100% from the year-ago figure of 74 cents mainly on higher revenues.

Las Vegas Sands Corp.’s LVS third-quarter 2017 adjusted earnings of 77 cents per share surpassed the Zacks Consensus Estimate of 67 cents by 14.9% and rose 8.5% year over year, owing to higher revenues.

In third-quarter 2017, Boyd Gaming Corporation BYD posted adjusted earnings of 22 cents per share, which lagged the Zacks Consensus Estimate of 23 cents by 4.2%. However, the bottom line increased 57.1% on a year-over-year basis.

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Las Vegas Sands Corp. (LVS): Free Stock Analysis Report
 
Wynn Resorts, Limited (WYNN): Free Stock Analysis Report
 
MGM Resorts International (MGM): Free Stock Analysis Report
 
Boyd Gaming Corporation (BYD): Free Stock Analysis Report
 
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