The Las Vegas-based resort and casino company reported earnings of 58 cents per share on revenue of $2.52 billion. Analysts were expecting earnings of 8 cents per share on revenue of $2.37 billion.
"We had a great quarter based upon businesses coming here for their conventions. We see a good fourth quarter in that regard, and also a good 2017," MGM CEO Jim Murren said on CNBC's "Squawk Box" this morning.
Three factors drove the positive results in the third quarter, he noted.
The first focused on businesses holding more conventions at MGM properties in Las Vegas. "Businesses need to feel that they have predictable business models before they get on the road and travel," Murren contended.
"Secondly, more international travelers. Twenty percent of the people that visit Las Vegas comes from overseas. Stronger international tourism also helps our business," Murren stated.
Thirdly, because consumers have "a little bit more money" on hand, Las Vegas has become a value proposition for consumers, he added.
"We're finding new ways for people to come to Las Vegas. We just build a new arena and are having the first professional hockey team next year. I hope we get football and maybe even basketball down the road. Las Vegas is really growing up," Murren said regarding the future.
Shares of MGM Resorts were higher in early afternoon trading on Tuesday.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
MGM Resorts' strengths such as its solid stock price performance, increase in net income and expanding profit margins are countered by weaknesses including disappointing return on equity and generally higher debt management risk.
You can view the full analysis from the report here: MGM
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.