NEW YORK (TheStreet) -- Shares of MGM Resorts International (MGM - Get Report) are up 3.74% to $23.88 in pre-market trade after the owner and operator of casino resorts reported 2014 first quarter earnings.
The company said diluted earnings per share was 21 cents, an improvement compared to diluted earnings per share of 1 cent a year ago.
Consolidated net revenue was $2.6 billion, a 12% increase over the prior year first quarter.
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- The revenue growth came in higher than the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 9.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 96.80% and other important driving factors, this stock has surged by 88.41% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- 36.13% is the gross profit margin for MGM RESORTS INTERNATIONAL which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.52% is in-line with the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, MGM RESORTS INTERNATIONAL's return on equity significantly trails that of both the industry average and the S&P 500.
- The debt-to-equity ratio is very high at 3.18 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, MGM's quick ratio is somewhat strong at 1.07, demonstrating the ability to handle short-term liquidity needs.
- You can view the full analysis from the report here: MGM Ratings Report
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