Stocks?were rising across the casino industry Tuesday, making up prior day losses after a number of analysts lowered April daily revenue estimates for Macau? the Chinese territory that is overtaking Las Vegas as the world gambling capital. The official April numbers will be released in the first week of May.
Shares of?MGM Resorts?MGM?+0.63%?International?were up close to 8% in midday trading Tuesday, climbing as high as $24.99. The gains came after the company reported better than anticipated earnings results.
In the first quarter MGM brought in $2.6 billion in net revenue, up 12% from a year earlier.?Net income came in at $108.2 million, a staggering jump from just $6.5 million last year and sharply ahead of the $42 million?Wall Street?analysts were expecting. Earnings per share were 21 cents versus an 8 cent estimate.
In a statement on the results CEO Jim Murren noted that at home in the United States the company is ?executing on our strategy to drive customer loyalty by increasing incremental convention business to our properties mid-week, hosting the best events on the weekends, and continually bringing new and exciting capital initiatives to our properties.? Murren noted MGM is also making progress on a second property in?Macau ? also spelled Macao ? that is schedule to open in early 2016.
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Source: Samantha Sharf (2014). MGM Resorts Shares Soar On Huge Income Growth, Forbes http://www.forbes.com/sites/samanthasharf/2014/04/29/mgm-resorts-shares-soar-on-huge-income-growth/ published Apr 29, 2014. Viewed May 02, 2014.