Why Is MGM (MGM) Up 8.6% Since Last Earnings Report?

A month has gone by since the last earnings report for MGM Resorts (MGM). Shares have added about 8.6% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is MGM due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for MGM Resorts International before we dive into how investors and analysts have reacted as of late.

MGM Resorts' Q2 Earnings Beat Estimates, Revenues Rise Y/Y

MGM Resorts reported second-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year, but the bottom line declined.

The company's quarterly results were supported by strong contributions from the BetMGM venture, Regional Operations and MGM China. Growth in EBITDA from these areas played a key role in overall performance.

The company expects continued strength in Las Vegas. Capital investments like the MGM Grand room remodel and solid convention bookings are likely to support growth in the fourth quarter of 2025 and 2026. The BetMGM venture is progressing toward its $500 million EBITDA goal. The MGM Digital segment is also expected to turn profitable in the coming years.

MGM Q2 Earnings & Revenue Details

MGM Resorts reported earnings per share (EPS) of 79 cents, beating the Zacks Consensus Estimate of 58 cents. In the prior-year quarter, it reported an adjusted EPS of 86 cents. 

Quarterly revenues of $4.41 billion topped the consensus mark by 2.4%. The top line increased 1.8% on a year-over-year basis. The upside was backed by strong contributions from MGM China and Regional Operations.

In the second quarter, consolidated adjusted EBITDA increased 2% year over year to $647.5 million.

MGM China

During the second quarter, MGM China's net revenues increased 9% year over year to $1.11 billion. The upside was primarily attributed to higher casino revenues, resulting from an increase in the main floor table games drop year over year. Higher VIP table games win percentage also added to the positive. MGM China casino revenues were up 10% year over year to $977 million.

MGM China's adjusted property earnings before interest, taxes, depreciation, amortization and restructuring or rent costs (EBITDAR) amounted to $301.3 million, up from $293.9 million reported in the prior-year quarter.

Domestic Operations

Net revenues at Las Vegas Strip Resorts were $2.11 billion, down 4% year over year. The decrease was caused by a room remodel and a decline in table games hold at MGM Grand Las Vegas.

Adjusted property EBITDAR declined 9% year over year to $710.5 million. Casino revenues were $457 million, down 6% year over year.

Net revenues from Regional Operations totaled $964.6 million, up from $927.1 million reported in the prior-year quarter. The upside was primarily driven by an increase in casino revenues, supported by higher table games drop and slot handle.

Adjusted property EBITDAR was approximately $308.7 million, up from $288.4 million reported in the prior-year quarter.

Net revenues from MGM Digital totaled $163.9 million, up from $143.3 million reported in the prior-year quarter. The rise was primarily driven by brand expansion.

Adjusted property EBITDAR loss was approximately $25.7 million compared with $13.9 million reported in the prior-year quarter.

MGM’s Balance Sheet & Share Repurchase

MGM Resorts ended the second quarter with cash and cash equivalents of $1.96 billion compared with $2.42 billion at 2024-end. Long-term debt at the end of the quarter was $6.21 billion, down from $6.36 billion at 2024-end.

In the second quarter of 2025, MGM repurchased nearly 8 million shares for an aggregate of $217 million. As of June 30, 2025, the company stated the availability of approximately $2.1 billion under its share repurchase program.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, MGM has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, MGM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

MGM belongs to the Zacks Gaming industry. Another stock from the same industry, Boyd Gaming (BYD), has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Boyd reported revenues of $1.03 billion in the last reported quarter, representing a year-over-year change of +6.9%. EPS of $1.87 for the same period compares with $1.58 a year ago.

For the current quarter, Boyd is expected to post earnings of $1.53 per share, indicating a change of +0.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Boyd has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research