NEW YORK (TheStreet) -- MGM Resorts International
(MGM) shares closed trading down -2.9% to $25.14 on Wednesday, one day after reporting second quarter earnings and revenue ahead of analysts expectations, following a note today from a Deutsche Bank
(DB) analyst concerning the Macau gaming region's revenue.
Deutsche Bank analyst Carlo Santarelli forecast an industry wide -0.9% decline in casino revenue in the Macau Chinese gaming region during the third quarter. This was a revision from his previous forecast of a 3% gain in quarterly revenue.
Yesterday, the casino reported adjusted second quarter earnings of 21 cents per diluted share, 14 cents better than analysts were expecting, on revenue of $2.58 billion that was ahead of analysts expectations of $2.48 billion.
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TheStreet Ratings team rates MGM RESORTS INTERNATIONAL as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:"We rate MGM RESORTS INTERNATIONAL (MGM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."
- You can view the full analysis from the report here: MGM Ratings Report
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