MGM Resorts Q4 revenue rises 6%, beats expectations

Overview

• Global gaming firm's Q4 revenue rose 6%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company repurchased 15 mln shares in Q4, reducing shares outstanding by ~48% since 2021

Outlook

• MGM Resorts expects strong group and convention business to drive growth in 2026

• Company anticipates continued growth from BetMGM North America Venture

• MGM Resorts plans expansion in Japan with MGM Osaka development

Result Drivers

• DIVERSIFIED STRATEGY - Co attributed growth to diversified operational strategy, despite Las Vegas challenges

• BETMGM CONTRIBUTION - BetMGM North America Venture distributed $135 mln to MGM Resorts, returning over 20% of cash investment

• MGM CHINA PERFORMANCE - MGM China net revenues increased 21% and Segment Adjusted EBITDAR rose 30%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 11 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the casinos & gaming peer group is "buy"

• Wall Street's median 12-month price target for MGM Resorts International is $44.50, about 20.5% above its February 4 closing price of $36.93

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPn5gzKVKa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.