MGM Q4 2021 Earnings Report Recap

MGM beat on earnings and on revenue

Key Takeaways

  • MGM's Las Vegas room occupancy rate came in above analysts' expectations.
  • Las Vegas is MGM's biggest market, and the room occupancy rate provides a measure of the total number of available rooms that are filled with paying guests.
  • MGM's adjusted earnings per share crushed estimates, and its revenue more than doubled compared to the year-ago quarter as the company continues to recover from the shock trigged by the COVID-19 pandemic.
MGM Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Adjusted EPS Beat $0.12 $0.02
Revenue Beat $3.1B $2.8B
Las Vegas Room Occupancy Rate Beat 86.0% 82.4%

Source: Predictions based on analysts' consensus from Visible Alpha

MGM Financial Results: Analysis

MGM Resorts International (MGM) reported Q4 FY 2021 earnings results that surpassed consensus estimates. The company's adjusted earnings per share (EPS) beat estimates by a wide margin. It was also the second straight quarter of positive adjusted EPS after six consecutive quarters of adjusted losses per share. Revenue also came in above analysts' estimates, rising 104.7% compared to the year-ago quarter. It marked the third straight quarter of revenue growth after five consecutive quarters of declines. MGM's occupancy rate for its Las Vegas properties came in at 86% for the quarter, beating expectations. The company's shares were up nearly 2% in extended trading. Over the past year, MGM's shares have provided a total return of 35.6%, above the S&P 500's total return of 17.3%.

MGM Las Vegas Room Occupancy Rate

MGM's room occupancy rate for its Las Vegas Strip properties of 86% was the highest it has been since the first quarter of FY 2020. MGM operates 13 resort properties in Las Vegas, including the Bellagio, MGM Grand, Luxor, Mandalay Bay, and Excalibur. The room occupancy rate is a key metric indicating the percentage of a resort's available rooms being occupied by paying guests. Investors should note that rooms that were out of service due to pandemic-related hotel closures were not counted as part of the total available room count in calculating the room occupancy rate. If these rooms were counted, the number would be far worse.

MGM said that its business benefitted from the removal of mandated operational and capacity restrictions during the quarter compared to the year-ago quarter, which was adversely affected by temporary closures at some of its properties as well as operational restrictions related to the pandemic. An increase in travel also helped to boost its results. However, its business operations in China were adversely affected by travel and entry restrictions in Macau during Q4 FY 2021.

MGM's next earnings report (for Q1 FY 2022) is expected to be released on April 26, 2022.

Article Sources

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  1. MGM Resorts International. "MGM Resorts International Reports Fourth Quarter and Full Year 2021 Financial and Operating Results," Page 3. Accessed Feb. 9, 2022.

  2. MGM Resorts International. "MGM Resorts International Reports Fourth Quarter and Full Year 2021 Financial and Operating Results," Page 12. Accessed Feb. 9, 2022.

  3. MGM Resorts International. "MGM Resorts International Reports Fourth Quarter and Full Year 2021 Financial and Operating Results," Page 6. Accessed Feb. 9, 2022.

  4. Visible Alpha. "Financial Data." Accessed Feb. 9, 2022.

  5. TradingView. "Price Chart: MGM and S&P 500." Accessed Feb. 9, 2022.

  6. MGM Resorts International. "MGM Resorts Destinations." Accessed Feb. 9, 2022.

  7. MGM Resorts International. "MGM Resorts International Reports Fourth Quarter and Full Year 2021 Financial and Operating Results," Page 1. Accessed Feb. 9, 2022.

  8. Yahoo! Finance. "Earnings Calendar: MGM." Accessed Feb. 9, 2022.

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