{"id":118554,"date":"2019-10-30T14:42:22","date_gmt":"2019-10-30T21:42:22","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=118554"},"modified":"2019-10-30T16:21:38","modified_gmt":"2019-10-30T23:21:38","slug":"mgm-shares-fell-on-q3-vegas-results-macau-provided-upside-surprise","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/mgm-shares-fell-on-q3-vegas-results-macau-provided-upside-surprise\/","title":{"rendered":"MGM Shares Volatile After Hours as Las Vegas Numbers Disappoint, But Macau Surprises, MGM Grand Deal Could Come Early 2020"},"content":{"rendered":"

Shares of MGM Resorts International (NYSE:MGM) slid more than three percent during Wednesday’s after-hours session.\u00a0 That happened after the company reported third-quarter results that missed estimates. The stock was lower by almost 0.50 percent at this writing.<\/p>\n

\"\"
MGM CEO Jim Murren said the 2020 cost-cutting plan is ahead of schedule and its regional properties are strong. (Image: AGB Nippon)<\/figcaption><\/figure>\n

On a non-generally accepted accounting principles (GAAP) basis, the gaming company earned 31 cents per share on revenue of $3.31 billion.<\/p>\n

Analysts expected the company to earn 32 cents a share on revenue of $3.33 billion for the September quarter. During the 90 days leading up to today’s report, one analyst raised an earnings estimate on MGM, while four lowered projections. There were four upwardly revised and six lowered revenue forecasts over that period.<\/p>\n

Las Vegas, where MGM is the largest operator, was the culprit behind the company’s weak third-quarter results. On the Strip, where MGM runs the Bellagio, Mandalay Bay, and Mirage, among other gaming venues, the company notched adjusted property earnings before interest, taxes, depreciation and amortization (EBITDA) of $441 million, below the Wall Street forecast of $454 million<\/strong>. Non-gaming revenue bolstered MGM’s third-quarter Las Vegas numbers.<\/p>\n

Our Las Vegas Strip Resorts saw an increase in revenues by 4 percent, with non-gaming revenues up 6 percent, thanks to a robust performance in rooms and food and beverage,\u201d said CEO Jim Murren in a statement.<\/p><\/blockquote>\n

In Sin City, MGM’s adjusted table games hold increased four percent in the September quarter to $1.5 billion, while adjusted property EBITDA margins surged 41 basis points to 29.30 percent.<\/p>\n

Macau Surprise, Regional Strength<\/h2>\n

While some rivals recently noted softness in Macau<\/a> due to a sluggish Chinese economy and the trade war with the US, MGM’s third-quarter results on the peninsula were solid. Adjusted property EBITDA at MGM Cotai was $182 million, up from $130 million a year earlier. That beat analysts’ estimates calling for $181 million.<\/p>\n

\n

\u201cVIP table games win increased 5% compared to the prior year quarter due to the opening of VIP gaming areas at the end of the third quarter of 2018 at MGM Cotai and an increase in the VIP table games win percentage,\u201d according to the company.<\/p>\n<\/div>\n

Strength for MGM at the higher end of the Macau market during the third quarter came as some competitors warned about weakness in the VIP segment there<\/a>.<\/p>\n

In addition to Macau, some of MGM’s domestic regional properties buffered the slack Strip results, with Murren specifically pointing to the Borgata in Atlantic City, N.J.<\/a> and MGM National Harbor in Maryland.<\/p>\n

MGM 2020 Ahead Of Schedule<\/h2>\n

\u201cMGM 2020,\u201d the company’s cost-cutting initiative unveiled earlier this year, is running ahead of schedule, according to Murren.<\/p>\n

The effort to rein in expenses and raise cash was hastened earlier this year month when MGM announced the sales of the Bellagio and Circus Circus on the Strip<\/a>. Combined, those deals will net the gaming operator $4.3 billion in cash that will be used to reduce debt and increase capital return to investors.<\/p>\n

\u201cOur asset light transition will generate significant proceeds from real estate monetization that can be used to strengthen our balance sheet, meaningfully reduce our shares outstanding, and invest in select growth initiatives,\u201d said Murren. \u201cOur increased profits spread across fewer shares outstanding will result in enhanced free cash flow per share and generate meaningful value for our shareholders<\/strong>.\u201d<\/p>\n

The MGM boss reminded analysts and investors that the company retains \u201cvaluable\u201d assets in the form of the MGM Grand, MGM Springfield, a 50 percent stake in CityCenter, and a 68 percent interest in real estate firm MGM Growth Properties (NYSE:MGP).<\/p>\n

“The Bellagio real-estate transaction represents more to us than a smart financial deal,” said Murren on a conference call with analysts and investors. “It provides a likely blueprint for the future.”<\/p>\n

He said a deal for MGM Grand could close in the early stages of 2020. Previously, analysts expected MGM would sell the Bellagio and MGM Grand in one transaction.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of MGM Resorts International (NYSE:MGM) slid more than three percent during Wednesday’s after-hours session.\u00a0 That happened after the company reported third-quarter results that missed estimates. The stock was lower by almost 0.50 percent at this writing. On a non-generally accepted accounting principles (GAAP) basis, the gaming company earned 31 cents per share on revenue […]<\/p>\n","protected":false},"author":46,"featured_media":118556,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810],"tags":[],"acf":[],"yoast_head":"\nMGM Shares Fell on Q3 Vegas Results, Macau Provided Upside Surprise<\/title>\n<meta name=\"description\" content=\"MGM stock languished late Wednesday on news of weakness in Las Vegas, but the company's third-quarter Macau and regional results were solid.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MGM Shares Fell on Q3 Vegas Results, Macau Provided Upside Surprise\" \/>\n<meta property=\"og:description\" content=\"MGM stock languished late Wednesday on news of weakness in Las Vegas, but the company's third-quarter Macau and regional results were solid.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/mgm-shares-fell-on-q3-vegas-results-macau-provided-upside-surprise\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-30T21:42:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-10-30T23:21:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/jm2.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-shares-fell-on-q3-vegas-results-macau-provided-upside-surprise\/\",\"url\":\"https:\/\/www.casino.org\/news\/mgm-shares-fell-on-q3-vegas-results-macau-provided-upside-surprise\/\",\"name\":\"MGM Shares Fell on Q3 Vegas Results, Macau Provided Upside Surprise\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-shares-fell-on-q3-vegas-results-macau-provided-upside-surprise\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-shares-fell-on-q3-vegas-results-macau-provided-upside-surprise\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/jm2.jpeg\",\"datePublished\":\"2019-10-30T21:42:22+00:00\",\"dateModified\":\"2019-10-30T23:21:38+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"MGM stock languished late Wednesday on news of weakness in Las Vegas, but the company's third-quarter Macau and regional results were solid.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-shares-fell-on-q3-vegas-results-macau-provided-upside-surprise\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/mgm-shares-fell-on-q3-vegas-results-macau-provided-upside-surprise\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-shares-fell-on-q3-vegas-results-macau-provided-upside-surprise\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/jm2.jpeg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/jm2.jpeg\",\"width\":1920,\"height\":1080,\"caption\":\"MGM CEO Jim Murren said the 2020 cost-cutting plan is ahead of schedule and its regional properties are strong. 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