MGM Resorts International (MGM – Free Report) reported fourth-quarter 2024 results, with earnings and revenues beating their respective Zacks Consensus Estimate. The top and bottom lines declined from the prior-year quarter’s level.
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MGM Resorts achieved record full-year net revenues, driven by strong performance from MGM China. Management remains optimistic about growth in 2025, supported by robust business demand, record convention bookings and revenue gains across key segments. The company’s digital segment is on an upward trajectory. It expects BetMGM in North America to be profitable in 2025.
Following the announcements, the company’s shares gained 9.7% during the after-hours trading session yesterday.
MGM Q4 Earnings & Revenue Details
MGM Resorts International Price, Consensus and EPS Surprise
MGM Resorts International price-consensus-eps-surprise-chart | MGM Resorts International Quote
MGM Resorts reported earnings per share (EPS) of 45 cents, which beat the Zacks Consensus Estimate of 32 cents. In the prior-year quarter, it incurred an adjusted EPS of $1.06.
Total revenues were $4.35 billion, which beat the Zacks Consensus Estimate of $4.28 billion by 1.5%. The top line declined 0.7% on a year-over-year basis.
MGM China
During the fourth quarter, net revenues increased 3.7% year over year to $1.02 billion. The upside was backed by higher casino revenues courtesy of a more favorable hold. MGM China casino revenues rose 4% year over year to $885 million.
Adjusted property earnings before interest, taxes, depreciation, amortization and restructuring or rent costs (EBITDAR) amounted to $254.7 million compared with $262.4 million in the prior-year quarter.
Domestic Operations
Net revenues at Las Vegas Strip Resorts were $2.22 billion, down 6.2% year over year. The downside was due to lower casino and room revenues following the strong impact of Formula 1 in the previous year.
Adjusted property EBITDAR declined 11% year over year to $765 million. Casino revenues were $501 million, down 15% year over year.
Net revenues from Regional operations totaled $931.6 million, compared with $873.4 million reported in the prior year quarter. The increase was primarily backed by higher casino revenues, partially benefiting from the impact of the union strike at MGM Grand Detroit in the previous year. Adjusted property EBITDAR was approximately $281.1 million compared with $233 in the prior-year quarter.
Balance Sheet & Share Repurchase
MGM Resorts ended the fourth quarter with cash and cash equivalents of $2.42 billion compared with $2.93 billion at 2023 end. Long-term debt at the end of the quarter was $6.36 billion, up from $6.34 billion at 2023-end.
During fourth-quarter 2024, MGM repurchased nearly 3 million shares for an aggregate of $121 million. As of Dec. 31, 2024, the company stated availability of approximately $826 million under its share repurchase program.
MGM 2024 Highlights
Total revenues were $17.24 billion compared with $16.2 billion in 2023.
Operating income amounted to $1.49 billion compared with $1.89 billion in 2023.
Adjusted EPS was $2.59 compared with $2.67 in the previous year.
MGM’s Zacks Rank
MGM currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Consumer Discretionary Releases
Royal Caribbean Cruises Ltd. (RCL – Free Report) posted mixed fourth-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate but revenues missing the same. Notably, the top and bottom lines increased on a year-over-year basis.
The company’s performance during the quarter was driven by stronger pricing on close-in demand and continued strength in onboard revenues. Its diversified fleet offerings, accompanied by its commercial and vacation experiences, are witnessing robust demand trends amid an improving global market backdrop. Thanks to these tailwinds, RCL could achieve its Trifecta goals before the schedule, pointing out the benefits it is realizing from the current improving scenario.
Adtalem Global Education Inc. (ATGE – Free Report) posted better-than-expected results in second-quarter fiscal 2025. Earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year, driven by strong enrollment growth and strategic initiatives.
Adtalem’s operational excellence strategy, Growth with Purpose, has driven six consecutive quarters of enrollment growth while supporting its mission to develop skilled healthcare professionals. Furthermore, strong demand at Chamberlain University and Walden University drove results. ATGE now expects fiscal 2025 adjusted earnings to be in the band of $6.10-$6.30 per share compared with the earlier prediction of $5.75-$5.95.
Las Vegas Sands Corp. (LVS – Free Report) reported fourth-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. The metrics declined on a year-over-year basis.
The company reported solid financial and operational performance at Marina Bay Sands, Singapore and continued recovery in the Macao market. LVS continues to execute its strategic objectives and remains optimistic about achieving industry-leading growth in both Macao and Singapore through its ongoing capital investment initiatives. It is optimistic about the introduction of new suite offerings, enhanced service levels and increased tourism spending in Asia.
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