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MGM Resorts' Q3 Earnings Miss Estimates, Revenues Increase Y/Y
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MGM Resorts International (MGM - Free Report) reported third-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined from the prior-year's quarter figure.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
During the quarter, the company reported sequential improvements in Las Vegas, driven by growth in Average Daily Rate and occupancy levels. The company emphasized advancements in digital investments and an impressive pipeline of integrated resort developments in Japan, New York and other markets to drive growth in the upcoming periods.
Earnings & Revenue Discussion
MGM Resorts reported earnings per share (EPS) of 54 cents, missing the Zacks Consensus Estimate of 58 cents. In the prior-year quarter, it posted adjusted EPS of 64 cents.
Total revenues were $4.18 billion, missing the Zacks Consensus Estimate of $4.22 billion by 0.9%. The top line increased 5.3% year over year on the back of strong contributions from MGM China.
MGM Resorts International Price, Consensus and EPS Surprise
During the third quarter, MGM China's net revenues surged 14% year over year to $929.5 million. The upside can be attributed to the ramp-up of operations following the removal of COVID-19-related travel and entry restrictions in the first quarter of 2023. MGM China casino revenues were up 12% year over year to $800 million.
MGM China's adjusted property earnings before interest, taxes, depreciation, amortization and restructuring or rent costs (EBITDAR) amounted to $237.4 million compared with 226.1 million reported in the prior-year quarter.
Domestic Operations
Net revenues at Las Vegas Strip Resorts were $2.13 billion, up 1.3% year over year. The upside was driven by a rise in non-gaming revenues.
Adjusted property EBITDAR increased 2% year over year to $731 million. Casino revenues were $476 million, down 13% year over year.
Net revenues from Regional operations totaled $952.1 million, compared with $925 million reported in the prior year quarter. Adjusted property EBITDAR was approximately $300 million, compared with $293.3 reported in the prior-year quarter.
Balance Sheet & Share Repurchase
MGM Resorts ended the third quarter with cash and cash equivalents of $2.95 billion compared with $2.93 billion at 2023 end. Long-term debt at the end of the quarter was $6.23 billion, down from $6.34 billion at 2023 end.
During third-quarter 2024, MGM repurchased nearly 8 million shares for an aggregate of $326 million. As of Sept. 30, 2024, the company stated availability of approximately $946 million under its share repurchase program.
Royal Caribbean Cruises Ltd. (RCL - Free Report) posted impressive third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
In the quarter, the company exceeded its guidance, driven by stronger pricing on close-in demand, continued growth in onboard revenues and reduced costs due to timing factors. The company has raised its outlook for 2024 and reported elevated demand patterns heading into 2025.
Mattel, Inc. (MAT - Free Report) reported impressive third-quarter 2024 results, wherein the adjusted earnings and net sales topped the Zacks Consensus Estimate. The top line surpassed the consensus estimate after missing it for three consecutive quarters. On a year-over-year basis, net sales declined while adjusted earnings grew.
The company’s quarterly results benefited notably from its Optimizing for Profitable Growth program along with the focus on its multi-year strategy to expand its IP-driven toy business and entertainment offering. Although the top line was adversely impacted by reduced sales from both the reportable segments, the bottom line showed resilience through operational efficiencies.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both the metrics increased on a year-over-year basis.
The company's performance was backed by notable improvements in revenue per available room, attributed to higher occupancy rates and average daily rates. Furthermore, in the quarter, Hilton opened 531 new hotels. It achieved net room growth of 33,600. As of Sept. 30, 2024, Hilton's development pipeline comprised nearly 3,525 hotels, with almost 492,400 rooms across 120 countries and territories — including 28 countries and regions with no running hotels. For 2024, the company expects net unit growth in the range of 7-7.5%.
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MGM Resorts' Q3 Earnings Miss Estimates, Revenues Increase Y/Y
MGM Resorts International (MGM - Free Report) reported third-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined from the prior-year's quarter figure.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
During the quarter, the company reported sequential improvements in Las Vegas, driven by growth in Average Daily Rate and occupancy levels. The company emphasized advancements in digital investments and an impressive pipeline of integrated resort developments in Japan, New York and other markets to drive growth in the upcoming periods.
Earnings & Revenue Discussion
MGM Resorts reported earnings per share (EPS) of 54 cents, missing the Zacks Consensus Estimate of 58 cents. In the prior-year quarter, it posted adjusted EPS of 64 cents.
Total revenues were $4.18 billion, missing the Zacks Consensus Estimate of $4.22 billion by 0.9%. The top line increased 5.3% year over year on the back of strong contributions from MGM China.
MGM Resorts International Price, Consensus and EPS Surprise
MGM Resorts International price-consensus-eps-surprise-chart | MGM Resorts International Quote
MGM China
During the third quarter, MGM China's net revenues surged 14% year over year to $929.5 million. The upside can be attributed to the ramp-up of operations following the removal of COVID-19-related travel and entry restrictions in the first quarter of 2023. MGM China casino revenues were up 12% year over year to $800 million.
MGM China's adjusted property earnings before interest, taxes, depreciation, amortization and restructuring or rent costs (EBITDAR) amounted to $237.4 million compared with 226.1 million reported in the prior-year quarter.
Domestic Operations
Net revenues at Las Vegas Strip Resorts were $2.13 billion, up 1.3% year over year. The upside was driven by a rise in non-gaming revenues.
Adjusted property EBITDAR increased 2% year over year to $731 million. Casino revenues were $476 million, down 13% year over year.
Net revenues from Regional operations totaled $952.1 million, compared with $925 million reported in the prior year quarter. Adjusted property EBITDAR was approximately $300 million, compared with $293.3 reported in the prior-year quarter.
Balance Sheet & Share Repurchase
MGM Resorts ended the third quarter with cash and cash equivalents of $2.95 billion compared with $2.93 billion at 2023 end. Long-term debt at the end of the quarter was $6.23 billion, down from $6.34 billion at 2023 end.
During third-quarter 2024, MGM repurchased nearly 8 million shares for an aggregate of $326 million. As of Sept. 30, 2024, the company stated availability of approximately $946 million under its share repurchase program.
MGM’s Zacks Rank
MGM currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Consumer Discretionary Releases
Royal Caribbean Cruises Ltd. (RCL - Free Report) posted impressive third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
In the quarter, the company exceeded its guidance, driven by stronger pricing on close-in demand, continued growth in onboard revenues and reduced costs due to timing factors. The company has raised its outlook for 2024 and reported elevated demand patterns heading into 2025.
Mattel, Inc. (MAT - Free Report) reported impressive third-quarter 2024 results, wherein the adjusted earnings and net sales topped the Zacks Consensus Estimate. The top line surpassed the consensus estimate after missing it for three consecutive quarters. On a year-over-year basis, net sales declined while adjusted earnings grew.
The company’s quarterly results benefited notably from its Optimizing for Profitable Growth program along with the focus on its multi-year strategy to expand its IP-driven toy business and entertainment offering. Although the top line was adversely impacted by reduced sales from both the reportable segments, the bottom line showed resilience through operational efficiencies.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both the metrics increased on a year-over-year basis.
The company's performance was backed by notable improvements in revenue per available room, attributed to higher occupancy rates and average daily rates. Furthermore, in the quarter, Hilton opened 531 new hotels. It achieved net room growth of 33,600. As of Sept. 30, 2024, Hilton's development pipeline comprised nearly 3,525 hotels, with almost 492,400 rooms across 120 countries and territories — including 28 countries and regions with no running hotels. For 2024, the company expects net unit growth in the range of 7-7.5%.