MGM Resorts' Stock Drops After Second-quarter Results

MGM Resorts International shares slumped 2.6% in premarket trade Monday, after the casino operator reported a first-quarter profit that beat expectations, but sales that missed. Net earnings came in at $169.9 million, or 33 cents a share, up from $102.7 million, or 20 cents a share, in the year-earlier period. The FactSet consensus was for earnings per share of 15 cents. Revenue fell to $2.33 billion from $2.63 billion, below the FactSet consensus of $2.4 billion, as declines in casino and entertainment revenue offset increases in rooms, food and beverage and retail. "With the anticipated difficult comparison of the first quarter behind us, we continue to see strong forward trends for the rest of the year in Las Vegas," said Chief Executive Jim Murren. "We are actively improving our balance sheet with the recent announcement of a special dividend and regular dividend policy from CityCenter, the conversion of approximately $1.45 billion in convertible notes into equity and the agreement to amend and extend MGM China's credit facility." The stock has inched up 0.1% year to date through Friday, while the S&P 500 has gained 2.4%.