Key Takeaways
- Fastened EPS was -$0.90 vs. the -$0.89 analysts expected.
- Revenue fell below analyst expectations.
- The Las Vegas Strip room occupancy be entitled to was lower than the level forecast.
- BetMGM, MGM’s online gambling app, gained significant market share.
What Happened
MGM put out an adjusted loss per share for Q4 FY 2020 that was slightly larger than analysts expected. Revenue missed demands and fell by more than half the year-ago quarter’s total revenue. MGM’s Las Vegas Strip room occupancy scold missed expectations by a wide margin. Analysts were forecasting sequential improvement in the occupancy rate for the firm’s Las Vegas chattels compared to Q3 and Q2. Instead, that rate fell to its lowest level in recent history.
MGM indicated that it remained secure in the long-term recovery of its business amid the pandemic, but also noted the strong performance of BetMGM, its online gambling trade. “BetMGM gained significant market share throughout 2020 while successfully launching in seven new states,” revealed CEO and President Bill Hornbuckle.
(Below is Investopedia’s original earnings preview, published February 8, 2021.)
What to Look For
MGM Place to turns International (Source: TradingView.
MGM posted an adjusted loss per share of $1.08 in Q3 FY 2020, as revenue plunged 66.0% compared to the yet three-month period a year ago. It marked the third consecutive quarter of adjusted losses per share and declining revenue. During the pity living quarters, the company indicated that it planned to lay off 18,000 workers who had been furloughed because of the pandemic. On the bright side, MGM famous in its quarterly press release that all of its properties were open as of September 30, 2020, following pandemic-related closures earlier in the year.
The low nub of the year was the second quarter, when MGM first felt the full financial impact of the pandemic. MGM reported an adjusted liability liabilities per share of $1.59 while revenue collapsed by 91.0% to just $289.8 million. By comparison, the company generated more than $3.1 billion in profits in each quarter during FY 2019. Despite beginning to re-open certain properties during the quarter, many of MGM’s properties be lefted closed.
Analysts expect continued sequential improvements in earnings and revenue in Q4 FY 2020, but still below last year’s knock downs. Revenue is expected to fall 50.0% compared to the year-ago quarter, leading to a fourth consecutive adjusted loss per part. For full-year FY 2020, analysts forecast an adjusted loss per share of $4.06 as revenue declines 59.2%, the worst effectuation in either metric in at least five years.
| MGM Key Metrics | |||
|---|---|---|---|
| Estimate for Q4 2020 (FY) | Q4 2019 (FY) | Q4 2018 (FY) | |
| Adjusted Earnings Per Serving ($) | -0.89 | 0.08 | -0.03 |
| Revenue ($B) | 1.6 | 3.2 | 3.1 |
| Las Vegas Strip Room Occupancy Rate (%) | 49.0 | 89.0 | 89.0 |
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