MGM Resorts' Stock Climbs After Profit Beats Expectations

By Tomi KilgoreMarketWatch Pulse

MGM Resorts International's stock surged 2.1% in pre-market trade Tuesday, putting it on track to open at a two-month high, after the casino operator beat second-quarter profit expectations. MGM reported earnings of $97.5 million, or 17 cents a share, compared with $110 million, or 22 cents a share, in the same period a year ago. The per-share results, which include one-time pre-opening and start-up expenses of 2 cents a share, beat the FactSet consensus of 11 cents. Revenue slipped to $2.39 billion from $2.58 billion, just above the FactSet consensus of $2.37 billion. The company also said it was implementing a profit growth plan, aimed at streamlining its business process, reducing costs, increasing market share and improving customer service. The stock has lost 7.2% year to date through Monday, while the S&P 500 has gained 1.9%.

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