MGM Resorts (MGM, Financial) has secured a new employment agreement with its CEO and President, Bill Hornbuckle, which extends his tenure until December 31, 2028. In addition to his continued leadership role, the company plans to engage Hornbuckle in an advisory capacity once his current term concludes. This advisory role will specifically focus on assisting with MGM’s integrated resort development in Osaka, Japan, continuing until the project’s launch.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 20 analysts, the average target price for MGM Resorts International (MGM, Financial) is $45.47 with a high estimate of $59.00 and a low estimate of $35.00. The average target implies an
upside of 41.15%
from the current price of $32.21. More detailed estimate data can be found on the MGM Resorts International (MGM) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, MGM Resorts International’s (MGM, Financial) average brokerage recommendation is currently 2.0, indicating “Outperform” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for MGM Resorts International (MGM, Financial) in one year is $61.85, suggesting a
upside
of 92.02% from the current price of $32.21. GF Value is GuruFocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. More detailed data can be found on the MGM Resorts International (MGM) Summary page.
MGM Key Business Developments
Release Date: April 30, 2025
Net Revenue from Operations: Increased by 34% for BetMGM.EBITDA: $22 million for BetMGM, an improvement of over $150 million from the prior year.iGaming Net Revenues: Grew 27%.Online Sports Net Revenues: Grew 68%.Las Vegas Strip Resorts: Record hotel month expected for April; record first quarter slot win up 7%.Regional Properties: Record March in RevPAR and slot win; segment adjusted EBITDA margins at or above 30%.MGM China Market Share: 15.7% with margins at 28%.Share Repurchase: Nearly 15 million shares repurchased for about $494 million in Q1; additional 8 million shares in Q2 for $215 million.Equity Commitment in Japan: JPY428 billion, with JPY392 billion remaining for a 43.5% ownership stake.EBITDA Enhancement Plan: $200 million plan in motion, with more than $150 million expected in 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points MGM Resorts International (MGM, Financial) reported a strong financial quarter, highlighted by a significant turnaround at BetMGM, with net revenue from operations increasing by 34% and achieving a positive EBITDA of $22 million.The MGM Rewards program reached a milestone of 50 million members, representing a growth of over 50% since 2020, showcasing the strength of MGM’s brand and customer loyalty.MGM’s partnership with Marriott is performing exceptionally well, contributing to record first-quarter occupancy and driving significant room bookings.MGM China maintained a mid-teens market share, ending the quarter at 15.7%, and is expanding its offerings with new villas and suites to cater to premium gaming customers.MGM’s digital business, including the launch in Brazil, is showing early traction with healthy retention rates, and the company is focused on executing its marketing strategy to support growth. Negative Points MGM faced a year-over-year impact of about $65 million related to the Super Bowl last year, affecting Las Vegas performance.Regional operations experienced a modest decline in revenue due to inclement weather, impacting overall financial results.The MGM Digital segment faced challenges due to adverse regulatory effects in the Netherlands and tough comps in Sweden, impacting revenues.MGM’s equity commitment in Japan increased to JPY428 billion, driven by updated spend estimates, which could impact future financial planning.The company is still in active discussions regarding business interruption insurance claims, with expectations of receiving further proceeds being uncertain and potentially lumpy.
AloJapan.com