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MGM Resorts (MGM) Q2 Earnings & Revenues Top Estimates, Rise Y/Y

Zacks Equity Research
·4 min read

MGM Resorts International MGM reported second-quarter 2021 results, wherein earnings and revenues beat the Zacks Consensus Estimate. While the bottom line surpassed the consensus estimate for the fifth straight quarter, the top line beat the consensus mark for the third consecutive quarter. Also, the top and the bottom line increased on a year-over-year basis. However, following the results, shares of the company fell 1.8% in after-hour trading session yesterday.

Bill Hornbuckle, CEO and president of MGM Resorts International, has said “We delivered a strong second quarter, driven by robust demand and productivity efforts across our domestic portfolio. Our Las Vegas Strip and Regional Operations Adjusted Property EBITDAR margins reached all-time records and our Regional Operations also delivered an all-time quarterly record in Adjusted Property EBITDAR. Our U.S. sports betting and iGaming venture, BetMGM, continues to outperform as the number two operator nationwide.”

Earnings & Revenue Discussion

MGM Resorts reported adjusted loss per share of 13 cents, narrower than the Zacks Consensus Estimate of a loss of 36 cents. In the prior-year quarter, the company had reported adjusted loss of $1.52 per share.

Total revenues were $2,268 million, which topped the Zacks Consensus Estimate of $2,162 million. The top line surged 682.6% from $289.8 million reported in the year-ago period. The upside was primarily driven by the rise in Casino, MGM China, BetMGM, and other sports betting and iGaming revenues.

MGM Resorts International Price, Consensus and EPS Surprise

MGM Resorts International Price, Consensus and EPS Surprise
MGM Resorts International Price, Consensus and EPS Surprise

MGM Resorts International price-consensus-eps-surprise-chart | MGM Resorts International Quote

MGM China

MGM China’s net revenues rose 836% year over year to $311 million. VIP Table Games Hold adjusted MGM China net revenues improved 895% year over year to $317 million.

MGM China’s adjusted property EBITDAR (Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) amounted to $9 million against a loss of $116 million in the prior-year quarter. Moreover, VIP Table Games Hold adjusted MGM China adjusted property EBITDAR was $13 million against the loss of $118 million in the prior-year quarter.

Domestic Operations

Net revenues at Las Vegas Strip Resorts during the second quarter were $1 billion, up 566% year over year owing to the easing of operational and capacity restrictions and increase in travel due to the easing of cross-border restrictions over time. Adjusted property EBITDAR improved to $397 million from a loss of $104 million in the prior-year quarter. Casino revenues in the quarter under review were $353 million, up 461% year over year.

During the quarter under review, net revenues from the company's regional operations totaled $856 million, up 859% from the prior-year quarter. This growth was majorly attributable to the continuous easing of state-wise restrictions. Adjusted property EBITDAR were $318 million, up 22% year over year due to a rise in casino revenues and cost-saving efforts. Moreover, adjusted property EBITDAR margin expanded 855 basis points year over year to 37%.

Casino revenues in the quarter under review rose 817% from the year-ago level of $77 million, primarily due to slots and a higher end customer base at its Regional Operations.

Balance Sheet & Share Repurchase

MGM Resorts ended the second quarter with cash and cash equivalents of $5,626.2 million compared with $5,101.6 million on Dec 31, 2020. The company’s long-term debt at the end of quarter stood at $12,574.9 million, down from $13,245.4 million as of Mar 31, 2021.

During the second quarter, the company repurchased nearly $5.6 million of shares at an average price of $39.48 per share for $220 million.

Zacks Rank & Key Picks

MGM Resorts carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the Zacks Gaming industry include Boyd Gaming Corporation BYD, Century Casinos, Inc. CNTY and Monarch Casino & Resort, Inc. MCRI, each carrying a Zacks Rank #2 (Buy). You can the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Boyd Gaming, Monarch Casino and Century Casinos’ 2021 earnings are earnings are expected to rise 3,120%, 161.6% and 119.9%, respectively.


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MGM Resorts International (MGM) : Free Stock Analysis Report

Boyd Gaming Corporation (BYD) : Free Stock Analysis Report

Monarch Casino & Resort, Inc. (MCRI) : Free Stock Analysis Report

Century Casinos, Inc. (CNTY) : Free Stock Analysis Report

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Zacks Investment Research