MGM Resorts International (NYSE:MGM) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

MGM Resorts International (NYSE:MGM) released its quarterly earnings results on Wednesday. The company reported $0.59 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.03, FiscalAI reports. MGM Resorts International had a return on equity of 24.43% and a net margin of 1.03%.The company had revenue of $4.45 billion during the quarter, compared to analysts’ expectations of $4.42 billion. During the same quarter in the prior year, the firm posted $0.79 EPS. MGM Resorts International’s quarterly revenue was up 2.2% compared to the same quarter last year.

Here are the key takeaways from MGM Resorts International’s conference call:

• Record second-quarter consolidated revenue: Las Vegas Strip revenue and segment adjusted EBITDA increased year over year, regional operations delivered all-time same-store quarterly revenue, and MGM Digital revenue grew 20%. Las Vegas benefited from strong group and convention demand, events, and improved MGM Grand performance.
• Regional and Macau operations remained resilient. Regional same-store slot handle and win rose 4% and 3%, respectively, while MGM China’s market share increased sequentially to 16.4%; management said Macau volumes rebounded to approximately first-quarter levels in July after a World Cup-related June disruption.
• Digital continued to expand, with BetMGM iGaming growth and MGM Digital revenue up 20%; management expects MGM Digital’s full-year EBITDA loss to be below last year’s level and sees potentially significant operating leverage in the European LeoVegas and BetMGM businesses in 2027.
• Long-term investments and capital returns remain active. The Osaka integrated resort remains on time and on budget for a fall 2030 opening, although MGM expects $125 million-$175 million of additional funding in the second half; the company also repurchased approximately 4.3 million shares for $164 million during the quarter.
• Las Vegas demand remains uneven: luxury, group, and convention segments are strong, but lower-end properties such as Luxor and Excalibur remain challenged, international visitation is below prior levels, and the company acknowledged that the fourth-quarter outlook requires additional work.

MGM Resorts International Trading Down 0.9%

Shares of NYSE MGM traded down $0.43 during midday trading on Thursday, reaching $45.40. 831,415 shares of the stock were exchanged, compared to its average volume of 4,583,017. The company has a 50 day simple moving average of $46.18 and a 200 day simple moving average of $39.87. The stock has a market capitalization of $11.62 billion, a P/E ratio of 63.12 and a beta of 1.29. The company has a debt-to-equity ratio of 1.93, a quick ratio of 1.30 and a current ratio of 1.33. MGM Resorts International has a twelve month low of $29.18 and a twelve month high of $51.59.

MGM Resorts International News Roundup

Here are the key news stories impacting MGM Resorts International this week:

• Positive Sentiment: Record revenue and improved operations: MGM reported second-quarter revenue of approximately $4.45 billion, up 2.2% year over year and slightly above consensus. Las Vegas Strip revenue rose 3% to $2.2 billion, Regional Operations posted an all-time best same-store quarterly revenue result, and MGM Digital revenue increased 20%. MGM Resorts second-quarter results
• Positive Sentiment: International growth supported the outlook: MGM China reported record first-half revenue and maintained a 15.9% Macau market share, benefiting from continued recovery and growth in the market. MGM China interim financial data
• Positive Sentiment: Analyst support increased: Susquehanna raised its price target to $53 from $52 while maintaining a positive rating, implying continued confidence in MGM’s operating momentum. Susquehanna MGM price target
• Neutral Sentiment: Mixed earnings comparisons: MGM reported adjusted EPS of $0.59, above the company’s cited consensus estimate of $0.56 but below Zacks’ $0.63 estimate. EPS also declined from $0.79 a year earlier, making the market’s reaction dependent on which earnings measure investors emphasize. MGM Q2 earnings estimate comparison
• Negative Sentiment: BetMGM profitability weakened: BetMGM’s second-quarter net revenue increased, but adjusted EBITDA declined, highlighting continued pressure on margins in the digital betting business. BetMGM second-quarter results
• Negative Sentiment: Takeover scrutiny remains: A securities law firm announced an investigation into Barry Diller’s proposed $48.30-per-share offer, creating potential uncertainty around the transaction and shareholder value. MGM offer investigation

Insider Buying and Selling

In related news, Director Daniel J. Taylor sold 6,675 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $38.44, for a total value of $256,587.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 3.38% of the company’s stock.

Hedge Funds Weigh In On MGM Resorts International

A number of hedge funds have recently modified their holdings of the business. CYBER HORNET ETFs LLC purchased a new stake in MGM Resorts International in the 2nd quarter valued at about $25,000. Global Retirement Partners LLC boosted its stake in MGM Resorts International by 55.9% during the fourth quarter. Global Retirement Partners LLC now owns 784 shares of the company’s stock worth $29,000 after buying an additional 281 shares during the period. Advisory Services Network LLC acquired a new stake in shares of MGM Resorts International during the third quarter valued at about $52,000. Los Angeles Capital Management LLC acquired a new stake in shares of MGM Resorts International during the fourth quarter valued at about $69,000. Finally, Brown Brothers Harriman & Co. raised its stake in shares of MGM Resorts International by 23.1% in the 4th quarter. Brown Brothers Harriman & Co. now owns 1,893 shares of the company’s stock valued at $69,000 after acquiring an additional 355 shares during the period. 68.11% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several analysts recently commented on MGM shares. Susquehanna boosted their price target on MGM Resorts International from $52.00 to $53.00 and gave the stock a “positive” rating in a research report on Wednesday. Capital One Financial raised their price objective on MGM Resorts International from $46.00 to $51.00 and gave the company an “overweight” rating in a report on Friday, April 17th. Barclays lifted their target price on shares of MGM Resorts International from $39.00 to $48.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 9th. KeyCorp raised shares of MGM Resorts International from a “sector weight” rating to an “overweight” rating and set a $117.00 target price for the company in a report on Monday, April 27th. Finally, Stifel Nicolaus reissued a “hold” rating and issued a $49.00 price target (up from $48.00) on shares of MGM Resorts International in a research note on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $52.49.

MGM Resorts International Company Profile

MGM Resorts International is a leading global hospitality and entertainment company that develops, owns and operates destination resorts, hotels and casinos. Its properties feature integrated gaming floors alongside luxury accommodations, fine dining and retail outlets, live entertainment venues and convention facilities. The company also offers loyalty programs, sports betting and digital gaming experiences to enhance guest engagement and drive repeat visitation.

The company traces its heritage to the opening of the original MGM Grand Hotel & Casino on the Las Vegas Strip in 1973.