MGM Resorts International Hits Estimates in Solid Quarter

Seth Jayson, The Motley Fool
Updated

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.

Revenue details
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.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
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.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
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.

Looking ahead
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.

Investor sentiment
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.

At the time thisarticle 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.

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