MGM Resorts Posts Better-Than-Expected Q1 Profit, But Sales Miss Estimates

MGM Resorts International (NYSE: MGM) reported better-than-expected earnings for the first quarter, but the company's revenue misses analysts' expectations. The Las Vegas, Nevada-based company posted quarterly net earnings of $169.9 million, or $0.33 per share, compared to $102.7 million, or $0.20 per share, in the year-ago quarter. Its revenue slipped to $2.33 billion from $2.63 billion. However, analysts were expecting a profit of $0.14 per share on revenue of $2.4 billion.The average estimate among 18 Estimize users was for earnings of $0.14 per share and revenue of $2.46 billion.Net revenue at the company's wholly owned domestic resorts half a percent to $1.6 billion. Rooms revenue at wholly owned domestic resorts rose 2 percent in the quarter, while casino revenue gained 1 percent. Food and beverage revenue rose 1 percent, while entertainment revenue dipped 6 percent.Revenue at MGM China declined 33 percent year-over-year to $630 million.At March 31, 2015, the Company had cash balance of $2.2 billion."With the anticipated difficult comparison of the first quarter behind us, we continue to see strong forward trends for the rest of the year in Las Vegas," said Jim Murren, Chairman & CEO of MGM Resorts International. "We are actively improving our balance sheet with the recent announcement of a special dividend and regular dividend policy from CityCenter, the conversion of approximately $1.45 billion in convertible notes into equity and the agreement to amend and extend MGM China's credit facility." MGM shares fell 1.87 percent to $21.00 in pre-market trading.