MGM Resorts (MGM) has become the latest company to join a growing list of Las Vegas casinos experiencing stock declines and waning demand.
MGM’s results for the second quarter missed on both the top and bottom line, with an adjusted EPS of $0.26 versus the $0.29 estimate, and revenue of $2.86 billion compared to the expected $2.96 billion. On Wednesday, MGM stock plunged nearly 10 percent, and is nearing a 52-week low of $27.88 on Thursday.
During the earnings call, CEO Jim Murren attributed the misses to a waning demand in Las Vegas casinos during the last quarter, a statement that rings true for other casinos, as well. Other casino stocks in Las Vegas have suffered hits lately, including Wynn Resorts (WYNN) and Caesars (CZR), down 9 percent and 14 percent over the last week, respectively.
Although the company missed on quarterly estimates, Murren restated MGM’s plan to buyback nearly $600 million in stock, as he believes it is “ridiculously undervalued.”
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