MGM Beats Q4 Expectations; Shares Up 5%

MGM Resorts International (MGM) delivered record fourth-quarter results, following the reopening of the economy, removal of mandated operational and capacity restrictions, coupled with a boost in travel. MGM results beat expectations on both its top and bottom lines, pushing the shares up more than 5% during the extended trading session.

MGM Resorts is an American hospitality and entertainment company operating resorts and casinos globally. Shares closed up 2.8% at $48.52 on February 9, in anticipation of upbeat quarterly results. MGM stock has gained 57.6% over the past year.

Record Q4 Results

MGM reported quarterly net revenues of $3.06 billion, exploding 105% compared to the prior-year quarter, which was negatively impacted by travel bans and restrictions due to the COVID-19 pandemic. What’s more, the number also surpassed Street estimates of $2.79 billion.

Net revenues from the Las Vegas Strip Resorts jumped a whopping 277% year-over-year to $1.8 billion. Meanwhile, net revenues from Regional Operations grew 51% to $900 million and MGM China recorded modest revenue growth of 3% to $315 million, primarily due to travel and entry restrictions in Macau.

Additionally, Q4 adjusted earnings came in at $0.12 per share, while the analysts had estimated an adjusted loss of $0.03 per share. The current quarter number is even better than the Q4FY20 adjusted loss of $0.90 per share.

For full-year fiscal 2021, MGM’s net revenues advanced 88% to $9.68 billion and adjusted loss stood at $0.67 per share, significantly better than FY20 adjusted loss of $3.94 per share.  

Official Comments

CEO and President of the company, Bill Hornbuckle, said, “The strategic milestones we achieved in 2021 position us for further success in 2022, and we remain excited about our long-term opportunities including leading the U.S. sports betting and iGaming market through BetMGM, pursuing disciplined geographic expansion such as the Japan integrated resort, and reinvesting in our core business to drive sustainable growth.”

“As part of these efforts, we are proud to have recently launched our new loyalty program, MGM Rewards, which offers an enhanced and further streamlined experience to millions of our members worldwide,” the CEO concluded.

Consensus Rating

The MGM stock has a Moderate Buy consensus rating based on 4 Buys versus 4 Holds. The average MGM Resorts stock prediction of $57 implies 17.5% upside potential to current levels.

Blogger Opinions

TipRanks data shows that financial blogger opinions are 86% Bullish on MGM, compared to a sector average of 68%.

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