MGM Resorts Q2 revenue beats estimates on higher casino gains

Overview

• U.S. casino and resort operator's Q2 revenue rose 1% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations but declined from prior year

• Company repurchased $164 mln in shares during the quarter

Outlook

• Company did not provide specific financial guidance for the current or upcoming periods

Result Drivers

• LAS VEGAS STRIP - Revenue rose 3% yr/yr, driven by higher casino revenue and improved table games win percentage, despite declines in hotel metrics

• REGIONAL OPERATIONS - Same-store revenue rose 3% yr/yr, offsetting a 4% decline in total regional revenue due to property dispositions

• DIGITAL GROWTH - MGM Digital revenue increased 20% yr/yr, though the segment continued to post losses

Company press release: ID:nPn8J8Nlca

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the casinos gaming peer group is "buy"

• Wall Street's median 12-month price target for MGM Resorts International is $48.30, about 4.5% above its July 28 closing price of $46.20

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• July 28 - Caesars Entertainment Q2 revenue slightly beats estimates on regional growth

• July 29 - US court revives lawsuit claiming AI software fueled price-gouging by New Jersey casinos

• July 29 - France's Banijay H1 revenue rises on sports betting, gaming growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)