MGM Resorts (MGM) Trails Markets on Earnings Miss

NEW YORK (TheStreet) -- MGM Resorts (MGM) ended the day 6.1% lower at $19.04 after disappointing Wall Street with its third-quarter earnings.

An earnings loss of 7 cents missed analyst estimates by 4 cents, according to Thomson Reuters' surveys. Losses were narrower year on year, less than a loss of 37 cents a share in the third quarter 2012. MGM exceeded expectations on the top line with $2.46 billion in sales 9.2% higher than a year earlier.

"I am pleased to report another solid quarter with double-digit EBITDA growth and increased margins, led by strength at MGM China and our Las Vegas Strip properties," said CEO Jim Murren in a statement.

EBITDA increased 24% year on year, led by MGM China. The company's Las Vegas Strip properties also performed well with 12% growth in adjusted property EBITDA, the fourth consecutive quarter the segment has seen gains.

TheStreet Ratings team rates MGM RESORTS INTERNATIONAL as a Hold with a ratings score of C. The team has this to say about its 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 increase in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and disappointing return on equity."

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