MGM Resorts International Increases Sales but Misses Estimates on Earnings
MGM Resorts International (NYS: MGM) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), MGM Resorts International beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share increased.
Gross margins shrank, operating margins increased, and net margins contracted.
MGM Resorts International tallied revenue of $2.29 billion. The 16 analysts polled by S&P Capital IQ expected revenue of $2.26 billion on the same basis. GAAP reported sales were 51% higher than the prior-year quarter's $1.51 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 -$0.35. The 21 earnings estimates compiled by S&P Capital IQ anticipated -$0.16 per share. GAAP EPS were -$0.44 for Q1 versus -$0.18 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%, 280 basis points worse than the prior-year quarter. Operating margin was 9.0%, 200 basis points better than the prior-year quarter. Net margin was -9.5%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.36 billion. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $9.39 billion. The average EPS estimate is -$0.47.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,131 members out of 1,369 rating the stock outperform, and 238 members rating it underperform. Among 298 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 251 give MGM Resorts International a green thumbs-up, and 47 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 $16.15.
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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.
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