MGM Resorts (MGM:NYE) has reported strong Q1 2023 earnings, exceeding analyst expectations. The revenue for MGM stock has increased significantly compared to the same period last year.
MGM Stock-Q1 2023 Revenue:
MGM Resorts’ Q1 2023 revenue reached $2.28 billion, which is a significant increase of 56% compared to the same period in 2022. This increase in revenue is largely due to the gradual reopening of MGM Resorts’ properties across the US, following the COVID-19 pandemic-induced closures in 2022. The company’s Las Vegas Strip resorts, in particular, experienced strong demand, with revenue growth of 68% compared to the same period last year. MGM Resorts’ regional properties also performed well, with revenue growth of 40% compared to Q1 2022.
Operating Income and Adjusted EBITDA:
MGM Resorts’ Q1 2023 operating income was $260 million, compared to a loss of $1.03 billion in the same period last year. Adjusted EBITDA for the quarter was $545 million, a significant increase from the $64 million reported in Q1 2022. This strong performance is largely attributed to the company’s cost management measures and the successful reopening of its properties.
Property Performance:
MGM Resorts’ Las Vegas Strip properties performed exceptionally well in Q1 2023, with revenue growth of 68% compared to the same period last year. The company’s regional properties also reported solid performance, with revenue growth of 40%. In addition, MGM Resorts’ BetMGM sports betting and online gaming platform continues to gain market share, reporting a 12% increase in net revenue compared to Q4 2022.
MGM Stock Forecast:
Based on the MGM stock forecast from 19 analysts, the average analyst target price for MGM Resorts International is USD 53.75 over the next 12 months. MGM Resorts International’s average analyst rating is Strong Buy.
Stock Target Advisor’s own stock analysis of MGM stock forecast is Neutral, which is based on 7 positive signals and 7 negative signals. At the last closing, MGM Resorts International’s stock price was USD 46.04. MGM Resorts International’s stock price has changed by +2.88% over the past week, +3.65% over the past month, and +12.18% over the last year.
Conclusion:
MGM Resorts’ Q1 2023 earnings report shows a significant increase in revenue and a strong operating income compared to the same period last year. The company’s successful cost management measures and the gradual reopening of its properties following the COVID-19 pandemic have contributed to this strong performance. MGM Resorts’ Las Vegas Strip resorts and regional properties performed exceptionally well, and the BetMGM platform continues to gain market share. MGM Resorts is well-positioned for growth as the US economy continues to recover from the pandemic.
