MGM Resorts' Q4 Earnings & Revenues Beat Estimates, Stock Rises

Core Insights - MGM Resorts International reported fourth-quarter 2024 results with earnings and revenues exceeding Zacks Consensus Estimates, although both metrics declined compared to the prior-year quarter [1][4]. Financial Performance - The company achieved record full-year net revenues of $17.24 billion, up from$16.2 billion in 2023, while operating income decreased to $1.49 billion from$1.89 billion [10]. - Fourth-quarter earnings per share (EPS) were 45 cents, surpassing the Zacks Consensus Estimate of 32 cents, but down from an adjusted EPS of $1.06 in the prior-year quarter [4]. - Total revenues for the fourth quarter were$4.35 billion, beating the Zacks Consensus Estimate of $4.28 billion by 1.5$1.02 billion, with casino revenues rising 4% to $885 million [5]. - Domestic operations on the Las Vegas Strip saw net revenues of$2.22 billion, down 6.2% year over year, attributed to lower casino and room revenues following the previous year's Formula 1 event [6]. - Regional operations generated net revenues of $931.6 million, an increase from$873.4 million in the prior year, primarily due to higher casino revenues [7]. Balance Sheet and Share Repurchase - As of the end of the fourth quarter, MGM Resorts had cash and cash equivalents of $2.42 billion, down from$2.93 billion at the end of 2023, while long-term debt increased to $6.36 billion from$6.34 billion [8]. - During the fourth quarter, the company repurchased nearly 3 million shares for a total of $121 million, with approximately$826 million remaining under its share repurchase program [8]. Future Outlook - Management remains optimistic about growth in 2025, supported by strong business demand, record convention bookings, and revenue gains across key segments, with expectations for BetMGM in North America to become profitable in 2025 [2].