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MGM Resorts Misses Q3 Estimates, Shares Fall

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MGM Resorts International (NYSE: MGM) reported financial results Thursday for the quarter ended September 30, 2014.

Diluted loss per share for the third quarter of 2014 was $0.04, while the average estimate expected earnings of $0.06. This compares to a diluted loss per share of $0.05 in the prior year third quarter.

Net revenue was $2.5 billion, slightly below estimates of $2.49 billion and a 1 percent increase over the prior year quarter.

"Our consolidated net revenues increased by 1 percent and EBITDA increased by 2 percent during the quarter. In Las Vegas, the market continues to improve as our top line revenues grew 3 percent. While we expected to have some negative impact to margins during the quarter as a result of the disruptions related to our investments in Delano at Mandalay Bay and the Strip frontage at Monte Carlo, we were also negatively affected by lower year over year table games hold and an increase in certain expenses. Looking forward, we remain highly focused on increasing revenues and expanding margins while driving operating leverage in an improving market," said Jim Murren, Chairman and Chief Executive Officer of MGM Resorts International.

"MGM China reported a 12 percent increase in EBITDA to $214 million and margin expansion of 330 basis points despite a difficult market. The construction of MGM Cotai is progressing well and is on time, and on budget, for a fall 2016 opening."

MGM Resorts International traded at $22.00 in the premarket, down 3.8 percent.

Posted-In: Jim MurrenEarnings News Pre-Market Outlook

 

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