MGM Resorts (MGM) shares were climbing more than 5% premarket Monday following the release of the company's third quarter earnings results before the opening bell.
The casino and resort company reported third quarter net income of $535.6 million, or $0.58 per share on an adjusted basis, on revenue of $2.52 billion. Analysts on average were expecting the company to report just $0.08 per share in profit on revenue of $2.37 billion.
MGM's stock has had a strong showing since reaching its year-to-date low along with the rest of the market on February 9. Year-to-date the company's stock is up more than 16%.
"MGM Resorts produced a tremendously strong quarter, delivering the best net revenues and adjusted property EBITDA at our domestic resorts since 2007," CEO Jim Murren said. "Looking ahead, we remain focused on organic growth through a stronger, reinvigorated company driven by our culture of continuous improvement."
To that end, the company will expand its brand with the opening of MGM National Harbor just outside of Washington in suburban Maryland and the Park Theater in Las Vegas next month.
Net revenues at the company's domestic resorts increased 16% to $1.9 billion in the quarter while same store sales increased 8% year over year. Meanwhile, the company's revenue in China fell 6% year over year, though operating income and adjusted EBITDA rose 34% and 17%, respectively as the Macau gaming region continued to struggle during the quarter. Macau may be turning around however, posting its third straight month of revenue gains after 25 straight months of revenue declines.
Government crackdowns on corrupt politicians has hampered the "high roller" segment of most revenues in the Chinese gaming district, leading to a 26% decline in VIP table games revenue. However, the company's main floor table game revenue increased 21% year over year.
MGM has a conference call with analysts scheduled for 11 AM EST this morning.