MGM Resorts International Goes Red

Seth Jayson, The Motley Fool
Updated

MGM Resorts International (NYS: MGM) reported earnings on Aug. 7. Here are the numbers you need to know.

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.

Revenue details
 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 details
 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.

Margin details
 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.

Looking ahead
 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.

Investor sentiment
 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.

The article MGM Resorts International Goes Red originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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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