MGM Resorts International
The 10-second takeaway
For the quarter ended March 31 (Q1), MGM Resorts International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share expanded. GAAP earnings per share grew.
Margins grew across the board.
MGM Resorts International chalked up revenue of $2.35 billion. The 21 analysts polled by S&P Capital IQ predicted sales of $2.34 billion on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $2.20 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 $0.03. The 24 earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share. Non-GAAP EPS were $0.03 for Q1 versus -$0.09 per share for the prior-year quarter. GAAP EPS were $0.01 for Q1 versus -$0.44 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%, 60 basis points better than the prior-year quarter. Operating margin was 12.5%, 310 basis points better than the prior-year quarter. Net margin was 0.3%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.39 billion. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $9.51 billion. The average EPS estimate is -$0.02.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,145 members out of 1,378 rating the stock outperform, and 233 members rating it underperform. Among 310 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 265 give MGM Resorts International a green thumbs-up, and 45 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 $14.68.
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