MGM Posts Mixed Q2 Results; Shares Volatile

MGM Resorts International

reported mixed bag of results for the second quarter. While earnings topped estimate, revenue missed thus making the shares to trade volatile in the pre-market trading on Thursday. The resort firm's net income attributable to its shareholders jumped to $474.35 million or $0.83 a share from $97.46 million or $0.17 a share in the year-ago period thanks to $0.57 a share gain on CityCenter's sale of The Shops at Crystals. Excluding the gain, it would have earned $0.26 a share, which was $0.04 a share higher than the Street estimate of $0.23. MGM's revenue fell to $2.27 billion from $2.39 billion in the previous year period and came below the analysts' predictions of $2.33 billion. Its chairman and CEO, Jim Murren, commented on the results saying, "Our Profit Growth Plan drove our domestic resorts Adjusted Property EBITDA to grow an impressive 12% and Adjusted Property EBITDA margins to improve by over 350 basis points, despite a record-breaking May last year." At the time of writing, shares of the company traded down by $0.78, or 3.28 percent, to $23.00 in the pre-market trading on Thursday.