MGM Resorts International
The 10-second takeaway
For the quarter ended June 30 (Q2), MGM Resorts International met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank to a loss.
Gross margins grew, operating margins expanded, net margins dropped.
MGM Resorts International reported revenue of $2.32 billion. The 18 analysts polled by S&P Capital IQ expected a top line of $2.35 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $1.89 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.12. The 22 earnings estimates compiled by S&P Capital IQ predicted -$0.15 per share. GAAP EPS were -$0.30 for Q2 against $6.23 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.5%, 80 basis points better than the prior-year quarter. Operating margin was 11.2%, 290 basis points better than the prior-year quarter. Net margin was -6.3%, 18,820 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.34 billion. On the bottom line, the average EPS estimate is -$0.12.
Next year's average estimate for revenue is $9.33 billion. The average EPS estimate is -$0.47.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,141 members out of 1,380 rating the stock outperform, and 239 members rating it underperform. Among 290 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 234 give MGM Resorts International a green thumbs-up, and 56 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MGM Resorts International is outperform, with an average price target of $15.87.
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