Gambling Stock Roundup: MGM & LVS' Q2 Picture Disappoints, MLCO & MCRI Earnings Beat
Zacks Investment Research | Jul 28, 2019 11:14PM ET
last week, MGM Resorts International (NYSE:MGM) and Las Vegas Sands Corp (NYSE:LVS) reported lower-than-expected financial numbers for second-quarter 2019. However, Melco Resorts & Entertainment Limited (NASDAQ:MLCO) and Monarch Casino & Resort, Inc.’s (NASDAQ:MCRI) earnings and revenues surpassed the Zacks Consensus Estimate.
Recap of Last Week’s Most Important Stories MGM Resorts Q2 Earnings & Revenues Miss Estimates
MGM Resorts reported second-quarter 2019 results, wherein earnings and revenues lagged the Zacks Consensus Estimate. Adjusted earnings of 23 cents per share missed the consensus estimate of 25 cents and also declined 11.5% from the figure registered in the prior-year quarter. Total revenues came in at $3,223.2 million, missing the consensus mark of $3,235 million but increased 13% year over year. This improvement was backed by robust performance of MGM China.
MGM China’s net revenues increased 26% year over year to $706 million owing to net revenue contribution of $316 million from MGM Cotai.
Net revenues at Las Vegas Strip Resorts totaled $1.5 billion, up 1% year over year. Meanwhile, adjusted property EBITDA decreased 4% year over year, while EBITDA margin contracted 145 bps. This decline was primarily due to weaker performance at casino.
Notably, this Zacks Rank #4 (Sell) company ended the second quarter with cash and cash equivalents of $1,160.6 million as of Jun 30, 2019, compared with $1,526.8 million as of Dec 31, 2018.
During the reported quarter, the company's board of directors approved a quarterly dividend of 13 cents per share, totaling $68 million. (Read More: Original post
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