Shares of MGM Resorts rebounded Thursday morning after clearing Q1 estimates late Wednesday. The casino operator reported record performance from its China and Las Vegas properties
MGM Resorts International reported a 68% earnings increase to 74 cents per share adjusted. Consolidated net revenues jumped 13% to $4.38 billion, primarily driven by increased revenue at MGM's Macau, China operations after coronavirus restrictions were lifted in the prior year quarter.
The results easily beat FactSet earnings expectations of 56 cents per share on $4.24 billion in sales.
MGM China had a record quarter as net revenues spiked 71% to $1.1 billion. Net revenues from Las Vegas Strip resorts rose 4% to a record $2.3 billion. MGM Resorts' regional operations saw a 4% decline in net revenue to $909 million, due to the February 2023 disposition of its Gold Strike Tunica resort and a decrease in casino revenue.
BetMGM, the company's iGaming and online sportsbook, recorded an operating loss of $32.6 million for the quarter, improving from an operating loss of $81.72 million last year.
MGM Resorts noted that its January licensing agreement with Marriott has already exceeded initial expectations and contributed over 130,000 room nights booked. MGM predicts it will be a growth driver for the rest of 2024.
CFO Jonathan Halkyard also said MGM Resorts' Japan venture is progressing and it has secured financing.
Susquehanna upgraded MGM Resorts stock to positive from neutral Thursday morning on results, The Fly reported. Management expects to spend more in Las Vegas, it's highest returning asset, heading into a softer Q2 environment, analyst Joseph Stauff wrote. He says growth from investments should accelerate after the second quarter, which will likely lead to improved estimate revisions in 2024 and 2024. Susquehanna lifted its price target on MGM stock to 54 from 46.
Barclays, Mizuho and JPMorgan all raised their price targets on MGM stock modestly Thursday morning.
MGM Stock
MGM stock settled to a 4.6% gain after initially spiking more than 9% early Thursday. Shares are wrestling to retake their 200-day moving average after a pullback in April
MGM resorts stock tumbled 11% in 2024 through Wednesday's close.
Rival Caesars Entertainment dipped 0.2% early Thursday. Caesars on Tuesday missed earnings forecasts with a much wider-than-expected loss.
Boston-based sportsbook DraftKings added 0.2% Thursday ahead of its earnings report Friday.
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