MGM Resorts International Beats The Street In Q3, Authorizes New Share Buyback Program

MGM Resorts International  MGM shares are trading higher in Wednesday’s after-hours session after the company reported third-quarter earnings.

What To Know: MGM reported quarterly earnings of 64 cents per share, exceeding the analyst consensus estimate of 49 cents, compared to losses of $1.39 per share in the same period last year.

The company clocked in revenue of $3.97 billion, beating the analyst consensus estimate of $3.87 billion. The figure represents a 16.31% increase over sales of $3.42 billion in the same period last year.

MGM announced a new $2 billion share repurchase program authorized by the Board of Directors on the heels of the $572 million in shares the company repurchased during the quarter.

Free Cash Flow for the nine months ended September 30 was $1.4 billion.

“We started the quarter with great momentum across our businesses. While we were faced with a difficult cybersecurity issue in September, our employees rose to the occasion with incredible resilience and determination. With the incident now behind us, we are a stronger company having been through the challenge,” said Bill Hornbuckle, CEO and President of MGM Resorts.

“Going forward we have much to be optimistic about with Formula 1’s inaugural Las Vegas race next week and early next year the debut of the MGM Collection with Marriott Bonvoy followed by the Super Bowl. Beyond these catalysts, MGM China is performing exceptionally well, and we have a pipeline of development opportunities including New York and Japan alongside the growth and development of our international digital business and BetMGM.”

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MGM Price Action: Shares of MGM were up 1.95% at $39.40 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by Michelle Raponi from Pixabay