MGM Resorts Q2 revenue beats estimates on higher casino gains
MGM•Segment 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.
Key details and outlook
The company did not provide specific financial guidance for the current or upcoming periods.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $4.50 bln | $4.42 bln (19 Analysts) |
| Q2 Adjusted EPS | Beat | $0.59 | $0.57 (15 Analysts) |
| Q2 EPS | $1.11 | ||
| Q2 Net Income | $292 mln |
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.
