MGM Resorts International Posts a Surprise Profit
MGM Resorts International (NYS: MGM) reported earnings on May 2. Here are the numbers you need to know.
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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The article MGM Resorts International Posts a Surprise Profit 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 position in any of the stocks mentioned. 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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