MGM Resorts stock sinks after loss widens and revenue falls more than expected

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Shares of MGM Resorts International sank 3.7% in after-hours trading Thursday, after the casino operator reported a wider-than-expected third-quarter loss and revenue that fell more than forecast as the COVID-19 pandemic continued to hurt operations. The net loss widened to $534.7 million, or $1.08 a share, from $37.1 million, or 8 cents a share, in the year-ago period. Excluding non-recurring items, the adjusted loss per share widened to $1.08 from 31 cents, and missed the FactSet loss consensus of $1.04. Revenue dropped 66% to $1.13 billion, below the FactSet consensus of $1.24 billion, as casino revenue fell 58%, rooms revenue declined 49%, food and beverage revenue was down 69% and entertainment, retail and other revenue fell 68%. Las Vegas Strip Resorts revenue dropped 68% while MGM China revenue tumbled 94%. The company said it saw signs of stability in the quarter, helped by sequential improvements in all of its markets. The stock, which closed Thursday’s regular-session up 5.9%, has climbed 31.0% over the past three months while the S&P 500 has edged up 1.6%.
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