MGM Resorts' (MGM) Q1 Earnings & Revenues Top Estimates

MGM Resorts International MGM reported impressive first-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was driven by solid performances at MGM China and luxury resort properties in Las Vegas.  Following the results, the stock moved up 3.5% during the after-hours trading session.

Earnings & Revenue Discussion

MGM Resorts reported earnings per share (EPS) of 74, outpacing the Zacks Consensus Estimate of 60 cents. In the prior-year quarter, it incurred an adjusted EPS of 44 cents.

Total revenues were $4.38 billion, surpassing the Zacks Consensus Estimate of $4.2 billion by 4.8%. The top line increased 13.2% year over year on the back of strong contributions from MGM China.

MGM Resorts International Price, Consensus and EPS Surprise

 

MGM Resorts International Price, Consensus and EPS Surprise

MGM Resorts International price-consensus-eps-surprise-chart | MGM Resorts International Quote

 

MGM China

During the first quarter, MGM China's net revenues surged 71% year over year to $1.06 billion. The upside was attributed to the ramp-up of operations following the removal of COVID-19-related travel and entry restrictions in the prior year period. MGM China casino revenues were up 66% year over year to $920 million.

MGM China's adjusted property earnings before interest, taxes, depreciation, amortization and restructuring or rent costs (EBITDAR) amounted to $301 million compared with 169 million reported in the prior-year quarter.

Domestic Operations

Net revenues at Las Vegas Strip Resorts were $2.26 billion, up 3.6% year over year, primarily driven by a rise in ADR.

Adjusted property EBITDAR dropped 1% year over year to $828 million. Casino revenues were $498 million, down 1% year over year.

Net revenues from Regional operations totaled $909 million, down 3.8% year over year. The downside was caused by the sale of Gold Strike Tunica (in February 2023) and a decline in casino revenues. Adjusted property EBITDAR was $274 million, down 12% year over year.

Balance Sheet & Share Repurchase

MGM Resorts ended the first quarter with cash and cash equivalents of $2.72 billion compared with $2.93 billion at 2023-end. Long-term debt at the end of the quarter was $6.27 billion, down from $6.34 billion at 2023-end.

During the first quarter of 2024, MGM repurchased nearly 12 million shares for an aggregate of $511 million.

Zacks Rank

MGM currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Consumer Discretionary Releases

Boyd Gaming Corporation BYD reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line declined on a year-over-year basis.

During the quarter, the company’s performance was impacted by January's severe winter weather in the Midwest and South and a softer Las Vegas locals market. The combined effect of these challenges fell within the anticipated range, aligning with earlier projections of $20-$25 million in EBITDAR for 2024.

Royal Caribbean Cruises Ltd. RCL reported stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.

RCL benefited from robust demand, strong pricing (on closer-in demand) and solid onboard spending. The company also raised its 2024 adjusted EPS guidance on the back of an exceptional WAVE season and continued strong demand.

Hilton Worldwide Holdings Inc. HLT reported solid first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate and rising year over year.

The company's performance was backed by notable improvements in revenue per available room (RevPAR), attributed to higher occupancy rates and average daily rates (ADR). It also benefited from its fee-based business model and robust development initiatives. HLT maintained its momentum in signings, starts and openings, reflecting a solid pipeline. Based on the growth trajectory observed thus far, the company is optimistic about sustaining the momentum in the near future.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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