Casino resorts operator MGM Resorts International (MGM) saw its stock price surge in after-hours trading after releasing its Q4 results. Earnings per share came in at $0.45, which beat analysts’ consensus estimate of $0.32 per share. Furthermore, the company reported consolidated revenue of $4.35 billion, slightly above analyst expectations of $4.28 billion.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
MGM’s performance was mixed across its various segments. MGM China saw a 4% increase in revenue to $983 million, driven by favorable casino revenues, particularly from main floor table games, which had a win rate of 25.6%.
In contrast, the Las Vegas Strip Resorts segment experienced a 6% decline in revenue to $2.2 billion, primarily due to decreased casino and room revenues compared to the prior year’s strong results from Formula 1. Regional Operations, however, reported a 7% increase in revenue to $873 million thanks to growth in casino revenue.
MGM Is Optimistic About 2025
Looking ahead, CEO Bill Hornbuckle said he is optimistic about the company’s growth prospects in 2025. In fact, he pointed to strong demand, record convention bookings — with December being the highest convention booking month on record — and positive revenue growth in January. Additionally, Hornbuckle noted that the digital business, which includes BetMGM, is on track to become profitable this year and is well-positioned to capitalize on a significant $41 billion market opportunity.
Is MGM a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MGM stock based on nine Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 25% decline in its share price over the past year, the average MGM price target of $46.65 per share implies 35.7% upside potential.
