Yahoo Finance MGM Resorts' (MGM) Q1 Earnings & Revenues Top, Rise Y/Y
MGM Resorts International MGM reported impressive first-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Bill Hornbuckle, CEO and president of MGM Resorts International, stated, "MGM Resorts is executing across all of its geographies and channels with record first quarter Las Vegas Strip Adjusted Property EBITDAR, consistently strong Regional Operations profit, MGM China's swift return to profitability, and BetMGM's anticipated positive earnings later this year.”
Earnings & Revenue Discussion
MGM Resorts reported earnings per share (EPS) of 44 cents, beating the Zacks Consensus Estimate of 4 cents. In the prior-year quarter, the company had reported an EPS of 1 cent.
MGM Resorts International Price, Consensus and EPS Surprise
MGM Resorts International price-consensus-eps-surprise-chart | MGM Resorts International Quote
Total revenues were $3,873.3 million, surpassing the Zacks Consensus Estimate of $3,514 million by 10.2%. The top line increased 36% from $2,854.3 million reported in the year-ago period. The upside was primarily driven by increased business volume and travel activity, primarily at MGM China and Las Vegas Strip Resorts.
MGM China
During the first quarter, MGM China's net revenues surged 130% year over year to $618 million. The upside was attributed to the removal of COVID-related travel restrictions in Macau. MGM China casino revenues increased 140% year over year to $555 million.
MGM China's adjusted property earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) amounted to $169 million against adjusted property EBITDAR of ($26) million reported in the prior-year quarter.
Domestic Operations
Net revenues at Las Vegas Strip Resorts during the first quarter were $2.2 billion, up 31% year over year. The company benefited from the inclusion of The Cosmopolitan, increased business volume and travel activity on a year-over-year basis.
Adjusted property EBITDAR surged 41% year over year to $836 million. Casino revenues in the quarter under review were $501 million, up 5% year over year.
During the quarter under review, net revenues from the company's regional operations totaled $946 million, up 6% from the prior-year quarter’s levels. The upside was primarily attributed to an increase in non-gaming business volume. Casino revenues in the quarter came in at $717 million, up 2% from the reported value in the prior-year quarter.
Adjusted property EBITDAR was $313 million, on par year over year. Adjusted property EBITDAR margin contracted 206 basis points (bps) year over year to 33.1%.
Balance Sheet & Share Repurchase
MGM Resorts ended the first quarter with cash and cash equivalents of $4,505.3 million compared with $5,911.9 million reported in the 2022-end. The company's long-term debt at the end of the quarter was $6,841.5 million, down from $7,432.8 million at 2022-end.
During the first quarter of 2023, the company repurchased nearly 12 million shares for an aggregate of $487 million. As of Mar 31, the company stated the availability of $2 billion under its February 2023 repurchase program.
Zacks Rank & Key Picks
MGM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.
Boyd Gaming Corporation BYD currently sports a Zacks Rank #1. BYD has a trailing four-quarter earnings surprise of 13.7%, on average. Shares of the company have increased 30.6% in the past six months.
The Zacks Consensus Estimate for BYD’s 2023 sales and EPS indicates a rise of 1.4% and 4%, respectively, from the year-ago period’s levels.
Crocs, Inc. CROX carries a Zacks Rank #2 (Buy). CROX has a trailing four-quarter earnings surprise of 19.6%, on average. Shares of the company have increased 58% in the past six months.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates a rise of 13% and 5.6%, respectively, from the year-ago period’s levels.
PlayAGS, Inc. AGS carries a Zacks Rank #2. AGS has a trailing four-quarter earnings surprise of 133.3%, on average. The stock of the company has declined 19.7% in the past six months.
The Zacks Consensus Estimate for AGS 2024 sales and EPS indicates a rise of 3% and 1,873.3%, respectively, from the year-ago period’s levels.
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MGM Resorts International (MGM) : Free Stock Analysis Report
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