MGM Resorts International Hits Estimates in Solid Quarter
MGM Resorts International (NYS: MGM) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MGM Resorts International met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share contracted.
Gross margins contracted, operating margins increased, net margins improved.
MGM Resorts International logged revenue of $2.23 billion. The 18 analysts polled by S&P Capital IQ wanted to see a top line of $2.25 billion on the same basis. GAAP reported sales were 57% higher than the prior-year quarter's $1.47 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.14. The 22 earnings estimates compiled by S&P Capital IQ forecast -$0.14 per share on the same basis. GAAP EPS were -$0.23 for Q3 compared to -$0.29 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 34.5%, 230 basis points worse than the prior-year quarter. Operating margin was 8.3%, 300 basis points better than the prior-year quarter. Net margin was -4.9%, 460 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.21 billion. On the bottom line, the average EPS estimate is -$0.20.
Next year's average estimate for revenue is $7.81 billion. The average EPS estimate is -$0.59.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,134 members out of 1,372 rating the stock outperform, and 238 members rating it underperform. Among 321 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 272 give MGM Resorts International a green thumbs-up, and 49 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 $15.37.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.