MGM Resorts International (NYSE:MGM) Announces Quarterly Earnings Results

Key Points

• EPS missed: MGM reported $0.49 EPS vs. a $0.57 consensus while revenue beat at $4.45 billion (+4.2% YoY), and the stock dipped about 1.5% on the mixed results.
• Las Vegas recovery: Consolidated net revenue grew over 4% and Las Vegas net revenue rose year‑over‑year for the first time in over a year, driven by strong convention demand and an all‑inclusive package attracting many first‑time visitors.
• Growth but margin headwinds: MGM China (~+9–10% revenue) and MGM Digital (digital +43%, LeoVegas >30%) delivered strong top‑line growth, yet adjusted EBITDA was hurt by a brand fee increase and $46M of litigation/self‑insurance charges, even as the company sold Northfield Park for $546M and repurchased ~$90M of shares to boost liquidity.

MGM Resorts International (NYSE:MGM - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.49 earnings per share for the quarter, missing the consensus estimate of $0.57 by ($0.08), FiscalAI reports. MGM Resorts International had a net margin of 1.17% and a return on equity of 26.04%. The firm had revenue of $4.45 billion for the quarter, compared to the consensus estimate of $4.38 billion. During the same period in the previous year, the firm posted $0.69 earnings per share. The business's revenue was up 4.2% compared to the same quarter last year.

Here are the key takeaways from MGM Resorts International's conference call:

• MGM reported consolidated net revenue growth (over 4%) and Las Vegas net revenue rose year‑over‑year for the first time in over a year, driven by strong convention demand, record 1Q convention ADRs/catering, and early momentum from an all‑inclusive package that is drawing roughly one‑third first‑time visitors.
• MGM China grew net revenue ~9% with March market share at 17.3% and continued premium‑mass and suite investments, but segment adjusted EBITDA declined due to the brand fee increase to 3.5% (which raises MGM Resorts’ cash flow).
• MGM Digital / LeoVegas delivered strong top‑line growth (digital +43%, LeoVegas >30%), is migrating sportsbooks to in‑house tech (Tipico acquisition) and targeting World Cup/Brazil upside, with losses expected to materially narrow and profitability targeted near 2027.
• Operating results were weighed down by increased self‑insurance accruals and litigation, including a $37M charge in Las Vegas and $9M in regionals, which meaningfully reduced segment EBITDA this quarter.
• Management increased financial flexibility by selling Northfield Park (6.6x trailing EBITDA) and repurchasing ~2.5M shares for $90M, and indicated proceeds give scope to redeploy capital and potentially accelerate buybacks at current valuations.

MGM Resorts International Stock Down 1.5%

MGM Resorts International stock traded down $0.59 during mid-day trading on Wednesday, reaching $39.15. The stock had a trading volume of 6,648,525 shares, compared to its average volume of 4,825,262. The company has a market capitalization of $10.02 billion, a price-to-earnings ratio of 52.20 and a beta of 1.35. The company has a 50-day moving average price of $37.10 and a two-hundred day moving average price of $35.36. MGM Resorts International has a one year low of $29.18 and a one year high of $40.94. The company has a debt-to-equity ratio of 1.91, a current ratio of 1.23 and a quick ratio of 1.20.

Insider Transactions at MGM Resorts International

In other news, major shareholder Iac Inc. purchased 550,000 shares of the company's stock in a transaction that occurred on Monday, March 23rd. The shares were bought at an average price of $37.30 per share, for a total transaction of $20,515,000.00. Following the purchase, the insider directly owned 66,372,350 shares in the company, valued at approximately $2,475,688,655. This trade represents a 0.84% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Keith A. Meister sold 37,500 shares of the company's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $34.27, for a total transaction of $1,285,125.00. Following the completion of the transaction, the director owned 5,347,978 shares in the company, valued at approximately $183,275,206.06. The trade was a 0.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 3.38% of the company's stock.

Hedge Funds Weigh In On MGM Resorts International

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. CYBER HORNET ETFs LLC bought a new position in MGM Resorts International during the 2nd quarter valued at about $25,000. Global Retirement Partners LLC lifted its stake in MGM Resorts International by 55.9% during the 4th quarter. Global Retirement Partners LLC now owns 784 shares of the company's stock valued at $29,000 after acquiring an additional 281 shares during the period. Advisory Services Network LLC bought a new position in MGM Resorts International during the 3rd quarter valued at about $52,000. Brown Brothers Harriman & Co. lifted its stake in MGM Resorts International by 23.1% during the 4th quarter. Brown Brothers Harriman & Co. now owns 1,893 shares of the company's stock valued at $69,000 after acquiring an additional 355 shares during the period. Finally, Los Angeles Capital Management LLC bought a new position in MGM Resorts International during the 4th quarter valued at about $69,000. 68.11% of the stock is owned by institutional investors.

Trending Headlines about MGM Resorts International

Here are the key news stories impacting MGM Resorts International this week:

• Positive Sentiment: Record consolidated net revenues and revenue beat for Q1, driven by growth at MGM China and MGM Digital — management highlighted record 1Q consolidated net revenues. MGM Q1 PR
• Positive Sentiment: MGM China posted strong Q1 results (revenue +10% YoY; daily mass GGR +19%) and Macau visitor arrivals improved, supporting international growth prospects. MGM China Q1
• Positive Sentiment: Closed sale of operations of MGM Northfield Park for $546 million in April — a material near‑term cash inflow that improves liquidity and reduces operating complexity. Northfield Park Sale
• Positive Sentiment: BetMGM North America venture reported year‑over‑year increases in net revenue and Adjusted EBITDA, supporting digital growth and recurring revenue diversification. BetMGM Growth
• Neutral Sentiment: Mixed quarter: consolidated revenue ($4.45B) beat consensus but results were uneven across metrics — strong top line but lower margins and a drop in net profit versus last year. This leaves the quarter as a mixed signal for near‑term EPS trajectory. Q1 Slides
• Negative Sentiment: EPS missed expectations — reported $0.49 vs. consensus ~$0.56–0.57 — and quarterly profit fell to $125.1M from $148.6M a year ago, prompting the stock selloff. Zacks Earnings Miss
• Negative Sentiment: Market reaction: shares dipped after the print as investors focused on the EPS miss and margin pressure despite revenue strength. Benzinga on Share Dip
• Negative Sentiment: Las Vegas operations face dining shifts (food‑court operator bankruptcy and permanent buffet closures), raising questions about non‑gaming revenue mix and local operating headwinds. Dining Shifts

Wall Street Analyst Weigh In

MGM has been the topic of a number of research reports. JPMorgan Chase & Co. boosted their target price on shares of MGM Resorts International from $41.00 to $42.00 and gave the company a "neutral" rating in a report on Thursday, April 16th. Stifel Nicolaus dropped their target price on shares of MGM Resorts International from $50.00 to $48.00 and set a "buy" rating on the stock in a report on Tuesday, April 7th. Wells Fargo & Company dropped their target price on shares of MGM Resorts International from $31.00 to $30.00 and set an "underweight" rating on the stock in a report on Thursday, April 16th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of MGM Resorts International from $43.00 to $44.00 and gave the company a "buy" rating in a report on Thursday, February 12th. Finally, Berenberg Bank reissued a "buy" rating on shares of MGM Resorts International in a research report on Wednesday, February 11th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, seven have issued a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, MGM Resorts International presently has a consensus rating of "Hold" and an average price target of $46.63.

About MGM Resorts International

MGM Resorts International is a leading global hospitality and entertainment company that develops, owns and operates destination resorts, hotels and casinos. Its properties feature integrated gaming floors alongside luxury accommodations, fine dining and retail outlets, live entertainment venues and convention facilities. The company also offers loyalty programs, sports betting and digital gaming experiences to enhance guest engagement and drive repeat visitation.

The company traces its heritage to the opening of the original MGM Grand Hotel & Casino on the Las Vegas Strip in 1973.

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