Shares of MGM Resorts International (
) are trading down roughly 2 percent Tuesday ahead of the release
of its fourth-quarter results before the opening bell on February
The Wall Street quarterly consensus for MGM Resorts is a loss of
$0.19 per share in earnings on $2.17 billion in revenue. During the
fourth quarter of last year, the company reported an earnings loss
of $0.20 per share on $1.47 billion in total sales.
For the full year 2011, analysts on the Street are currently
estimating a loss of $0.53 per share in earnings on $7.76 billion
in total sales.
The fourth quarter conference call is scheduled for 11:00 am ET on
February 22, 2012. Dial 1-877-355-2280 for domestic callers and
1-706-758-3659 for international callers. The conference call
access code is 43802425.
According to data from Bloomberg, shares of MGM Resorts have 18 Buy
ratings, eight Hold ratings and one Sell rating. The average price
target on shares of MGM is $16 with a range from $11 to $19.
- Back on February 3rd Goldman Sachs downgraded its rating on
the company from Buy to Neutral as the price of shares neared its
$14.50 price target. The firm remains confident in the company's
long-term outlook and potential. For the upcoming quarter, the
Goldman forecasts a loss of $0.24 per share in earnings.
- JPMorgan highlighted MGM China's board of directors meeting
to discuss a possible dividend, which is anticipated to be in the
range of $400-$500 million. MGM will receive 51 percent of the
amount decided due to its ownership in the company. JPMorgan
reaffirmed its Overweight rating on the company ahead of the
- Ahead of the release, Brean Murray Carret & Co. has
raised its estimates for the quarter due to continued stronger
than expected trends on the Strip. For the quarter, the firm now
forecasts earnings will total a loss of $0.19 per share, down
from its previous forecast of a $0.22 per share loss. Brean
Murray Carret said the company's Las Vegas properties should see
a 20 percent growth on a year over year basis.
The firm believes the recent financial changes and improving
market trends indicate the company may have about $500 million in
free cash flows in FY13.
An analyst at Brean Murray Carret commented, "Although RevPAR
gains will likely be weaker in 2012, MGM has the opportunity to
generate increased growth in the gaming segment. We estimate
MGM's Las Vegas gaming revenue was about flat year over year in
2011 due to abnormally low hold percentage despite Las Vegas
Strip gaming revenue increasing 5 percent. We believe normalized
hold percentages will drive an improved outlook for MGM in 2012."
Brean Murray Carret increased its price target on the company
from $15 to $17 and reiterated its Buy rating.