NEW YORK (TheStreet) -- Shares of MGM Resorts International (MGM) are up 1.51% to $26.85 after the casino operator reported second quarter earnings that beat analysts' estimates, boosted by an increase in gambling in the U.S., Bloomberg reports.
Net income in the period ended June 30 was $105.5 million, or 21 cents per share, versus a loss of $93 million, or 19 cents, a year ago. Analysts projected 10 cents, the average of 20 estimates compiled by Bloomberg.
MGM sales in China declined 1% to $828 million. MGM China also announced a dividend of $136 million, which will be paid to shareholders of record as of August 25 on September 1.
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Total revenue was up 4% to $2.58 billion, above the $2.57 billion average of estimates.
MGM recorded a $29 million non-cash impairment expense in the quarter, related to its joint venture investment in Grand Victoria.
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."