The company has historically focused on entertainment, dining, and shopping as well as gambling. travel market focused on domestic leisure travelers, MGM properties in Massachusetts, Detroit, Mississippi, Maryland, New Jersey, and Nevada may become destinations this summer. Photographer: Roger Kisby/Bloomberg © 2020 Bloomberg Finance LP It allows members redeem points earned for time spent at the gambling table on hotel stays, discounted meals and show tickets.įountains stands in front of the Bellagio Hotel and Casino at night in Las Vegas, Nevada, U.S., on. As a re-opening play, investors seem as bullish about MGM’s prospects as they are about other travel sectors such as airlines and hotels.Īnd like airlines and hotels, MGM also has a popular loyalty program, M life Rewards. On a per share base, MGM lost $0.92 in the quarter compared to earnings per share of $3.91 in the prior year quarter.īut the stock market is a forward-looking mechanism.

The previous year’s quarter included a $2.7 billion gain on MGM’s sale of the Bellagio to Blackstone MGM continues to operate the resort as part of an ‘asset light’ strategy.

MGM had a consolidated operating loss of $364 million compared to operating income of $3.0 billion in the prior year quarter. MGM said, “Consolidated net revenues decreased 53% compared to the prior year quarter to $1.5 billion, driven by lower business volume and travel activity due to the pandemic, hotel and other closures at certain properties, travel restrictions to our Macau resorts, and ongoing operating restrictions.” When MGM announced its latest earnings, in February, it highlighted that “The Company's liquidity at its domestic operations remains strong at $5.6 billion.” But other numbers were not as positive.

Will MGM continue its strong growth or has its stock price gotten ahead of itself? The question is whether the company’s earnings will match the anticipation that tourists and business conventioneers will return to Las Vegas in numbers. The analysts’ consensus on a price target for MGM was 39.66, below its April 21 closing price of 41.20. Ten analysts, more than 60%, called MGM a hold, and one gave it an ‘underperform’ rating. Of 16 analysts listed by CNBC, only two had MGM as a strong buy.

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