MGM Resorts International Q4 Profit Badly Missed Expectations Despite Strong Revenue Growth
Written by StockNews.com
MGM Resorts International (NYSE: MGM) early Thursday [Feb 16, 2017 | 7:40am] posted mixed fourth quarter earnings results, as profit badly missed expectations despite strong revenue growth.
The Las Vegas-based casino resort operator reported adjusted Q4 EPS of $0.11, which was $0.07 worse than the Wall Street consensus estimate of $0.18. Revenues rose 12.3% from last year to $2.46 billion, narrowly beating analysts’ $2.45 billion view.
Domestic resorts provided $1.8 billion in revenue in the latest period, up 17% year-over-year. Meanwhile, revenue per available room (REVPAR) growth was 3% in Q4, matching the company’s prior guidance. REVPAR is a highly important industry metric used to measure the health of a firm’s lodging operations.
MGM also noted that operating income in its domestic resorts was $312 million, with EBITDA surging 14% to $589 million.
Looking ahead, MGM forecast Q1 Las Vegas Strip REVPAR growth of 7%.
The company commented via press release:
“In 2016, MGM Resorts produced diluted earnings per share of $1.92 and delivered the best same-store domestic Adjusted Property EBITDA and Adjusted Property EBITDA margins in nine years. The achievement of key financial and strategic milestones demonstrates our continued focus on driving profitability and shareholder value, strengthening our balance sheet, and further positioning MGM Resorts as a leading entertainment and destination-resort company,” said Jim Murren, Chairman & CEO of MGM Resorts. “We are excited about the outlook for 2017, including the full year contributions from MGM National Harbor and Borgata, the continued favorable Las Vegas dynamics supported by our investments including T-Mobile Arena and the Park Theater, the opening of MGM Cotai in Macau, and our persistent drive for continuous improvement throughout all aspects of our Company.”
...Year-to-date, MGM had gained 2.67%, versus a 5.10% rise in the benchmark S&P 500 index during the same period.
MGM currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 20 stocks in the Entertainment – Casinos/Gambling category.
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