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MGM Resorts shares drop 4% on earnings and revenue miss

EditorRachael Rajan
Published 2024-10-30, 04:58 p/m
© Reuters.
MGM
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LAS VEGAS - MGM Resorts International (NYSE:MGM) reported third quarter earnings that fell short of analyst expectations, sending shares down 4% in after-hours trading on Monday.

The casino and hospitality giant posted adjusted earnings per share of $0.54, missing the consensus estimate of $0.56. Revenue came in at $4.18 billion, below analyst projections of $4.21 billion.

Despite the miss, MGM reported record consolidated net revenues for the quarter, driven by strong performance at its MGM China (OTC:MCHVY) operations. The company's Las Vegas Strip properties saw sequential improvement throughout the period.

"We are pleased to report record consolidated net revenues for the third quarter, driven by record results from MGM China," said Bill Hornbuckle, CEO and President of MGM Resorts International. "In Las Vegas, we drove sequential improvement throughout the quarter and many key metrics are demonstrating strength including growth in ADR and occupancy."

MGM China net revenues surged 14% YoY to $929 million, benefiting from the recovery after COVID-19 restrictions were lifted. Las Vegas Strip Resorts revenue edged up 1% to $2.1 billion.

The company continued its share repurchase program, buying back over $300 million worth of stock during the quarter. Year-to-date, MGM has repurchased approximately $1.3 billion of shares.

Looking ahead, management expressed optimism about long-term growth prospects, citing opportunities in Japan, New York and the digital gaming space.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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