MGM (MGM) Up 10.3% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for MGM Resorts (MGM). Shares have added about 10.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is MGM due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

MGM Resorts Q1 Earnings Miss Estimates, Revenues Rise Y/Y

MGM Resorts reported first-quarter 2026 results, with earnings missing and revenues surpassing the Zacks Consensus Estimate. On a year-over-year basis, the top line increased while the bottom line declined.

MGM Resorts’ first-quarter results were supported by solid performance across key segments, particularly MGM China and digital operations. Strength in international markets and interactive gaming, along with improving trends in Las Vegas Strip Resorts, contributed to revenue growth. However, profitability was pressured by higher costs and lower segment-level margins.

MGM’s Q1 Earnings & Revenue Details

MGM Resorts reported adjusted earnings per share of 49 cents, missing the Zacks Consensus Estimate of 56 cents by 12.5%. In the prior-year quarter, it reported an adjusted EPS of 69 cents.

Quarterly revenues of $4.45 billion topped the consensus mark of $4.36 billion by 2.1%. The top line increased 4% on a year-over-year basis. This upside was backed by strong contributions from MGM China and MGM Digital.

MGM China

During the first quarter, MGM China's net revenues increased 9% year over year to $1.12 billion. This upside was primarily driven by higher casino revenues, supported by an increase in main floor table games drop and win.

MGM China's adjusted property EBITDAR amounted to $273 million, down from $286 million reported in the prior-year quarter, reflecting higher intercompany branding fees.

Domestic Operations

Net revenues at Las Vegas Strip Resorts were $2.18 billion, slightly up year over year. The improvement marked the first year-over-year increase since the third quarter of 2024, supported by stronger monthly trends and convention bookings.

Adjusted property EBITDAR declined 8% year over year to $749 million, reflecting margin pressure despite stable operating trends.

Net revenues from Regional Operations totaled $918 million, up from $900 million reported in the prior-year quarter. This upside was primarily driven by improved casino activity, including higher table games drop and slot handle.

Adjusted property EBITDAR was $259 million compared with $279 million reported in the prior-year quarter.

Net revenues from MGM Digital totaled $183 million, up from $128 million reported in the prior-year quarter. The rise was primarily driven by continued momentum across interactive gaming operations.

Adjusted property EBITDAR loss was $26 million compared with a loss of $34 million reported in the prior-year quarter.

MGM’s Balance Sheet & Share Repurchase

MGM Resorts ended the first quarter with cash and cash equivalents of $2.29 billion compared with $2.06 billion at 2025-end. Long-term debt stood at $6.4 billion compared with $6.23 billion at 2025-end.

The company repurchased approximately 2 million shares for $90 million during the quarter. Additionally, MGM closed the sale of MGM Northfield Park operations for $546 million in April 2026, enhancing liquidity and supporting capital allocation priorities.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

At this time, MGM has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, MGM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

MGM is part of the Zacks Gaming industry. Over the past month, PENN Entertainment (PENN), a stock from the same industry, has gained 11.3%. The company reported its results for the quarter ended March 2026 more than a month ago.

PENN Entertainment reported revenues of $1.78 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $0.11 for the same period compares with -$0.25 a year ago.

PENN Entertainment is expected to post earnings of $0.32 per share for the current quarter, representing a year-over-year change of +220%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for PENN Entertainment. Also, the stock has a VGM Score of A.

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This article originally published on Zacks Investment Research (zacks.com).

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