MGM Lower Off Q1 Sales Miss, But Kept Afloat By REIT Spin-Off Speculation

shares were trading lower by $0.28 (1 percent) at $21.12 in Monday's session. Earlier in the day, the company posted a better-than-expected profit for EPS ($0.26 vs. $0.14 estimates), but missed on sales ($2.33 billion vs. $2.4 billion). The issue was whacked last Wednesday (falling from $22.36 to $21.11) when

reported worse than expected earnings. However, it has been able to maintain a $20.77 to $21.73 range over the four trading sessions (including today). What is keeping the shares from sharply declining is the company exploring a possible spin-off of its undervalued real estate assets into a REIT structure. In the past, the Street has looked favorably on these types of transactions.