MGM Posts 7-Cent Loss Per Share in Third Quarter
MGM is trading near its 52-week low of $27.2 (0.7% above the low) on elevated volume (2.1× avg).
Summary
MGM Resorts reported a third-quarter loss of $17 million, or 7 cents per share, on revenue of $4.2 billion, per Dow Jones Newswires. The adjusted loss per share was 11 cents, against an IBES estimate of 0.1, and the company noted lower third-quarter room rates along with an October rebound. The result lands with the stock at $27.40, essentially on its 52-week low of $27.20 and far below the $48.30 per share that People Inc. offered before withdrawing its more than $18 billion bid in September. That withdrawal removed the takeover floor and left the shares exposed to operating results, and MGM China already showed the pressure with a 20% drop in first-half profit to HK$1.901 billion. The 8-K filed today amending MGM's voting arrangements adds governance noise on top of a weak quarter.
At the time of this announcement, MGM was trading at $27.40 on NYSE in the Trade & Services sector, with a market capitalization of approximately $6.9B. The 52-week trading range was $27.20 to $51.59. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.