MGM Resorts' Q4 EPS Outpaces Estimates
The gambling and resort giant delivered a strong quarterly earnings beat driven by growth in its online and regional segments, despite headwinds in Las Vegas.
MGM Resorts International (NYSE:MGM), a leading global hospitality and entertainment company, released its fourth-quarter results on Feb. 12. Significantly, its adjusted EPS came in at $0.45, surpassing expectations of $0.32, as revenues of $4.35 billion exceeded the expected $4.27 billion. However, net income decreased to $157 million from $313 million a year ago -- a decline the company attributed largely to its one-time gains in the prior-year period from the sale of its Gold Strike Tunica property.
Source: Analysts' estimates for the quarter provided by FactSet.
MGM Resorts International is a major player in the global hospitality industry, known for its expansive portfolio of resorts and casinos. Recently, its efforts have been focused on an asset-light business model that enables effective capital allocation and digital expansion. MGM's strategy has involved divesting real estate assets and leasing them back. Concurrently, it has been enhancing its online gaming capabilities through platforms like BetMGM, aiming for a strong footprint in an increasingly digital market. Key success factors have included maintaining robust service quality and remaining competitive in key geographical areas such as Las Vegas, Macau, and regional U.S. markets.
