Shares of MGM popped on Monday with investors bidding the stock higher after learning that the casino’s loss wasn’t as bad as feared, largely due to cost cutting.
Specifically, the casino reported a net loss of $212.6 million compared with year-earlier net income of $113.1 million.
According to Susquehanna analyst Robert LaFleur, MGM did a "good job" controlling expenses in the quarter. "It was from our view sort of an in-line quarter," LaFleur says.
MGM, whose holdings include nine Las Vegas Strip casino-hotels, gambling resorts in Mississippi and Michigan, and joint ventures in New Jersey and China's Macau, said $2.65 billion of debt and equity issuances completed in the quarter improved its financial position.
It also said it was evaluating other ways to bolster its finances, which may have provided another catalyst for the stock.
The company is looking to further expand in Asia. A few weeks back MGM revealed that it’s in talks with investors to develop a casino in Taiwan and also was eyeing potential projects in Japan and the Philippines.
Should you place your bets on MGM now for long-term prosperity? Find out from CEO James Mureen. Watch the video now!