MGM's profit in the second quarter climbed 4% from the same 2005 period, the company announced Thursday morning. Company executives attributed the increase to strong performance at the Bellagio and other high-end properties. Then they cited an apparent softening in its lower-end "value" properties like Circus Circus and predicted a lower-then-expected profit for the third quarter. Trading at nearly four times average volume, shares hit a 52-week low of $34.24 before rebounding to $35.21, down just over 7% ($2.69) on the day.
MGM's second quarter net income increased to $146.4 million, or $0.50 cents per share, from $141.2 million, or $0.48 cents per share, in the same period last year. Wall Street's average expectation was for $0.53 per share. MGM also projected earnings of $0.40 per share for the third quarter, about 10% below previous expectations. MGM's revenue for the quarter rose 9% to $1.87 billion from $1.72 billion in the same period a year ago, but Wall Street expected $1.8 billion. Earnings would have been $0.56 per share save for one-time charges such as pre-opening expenses related to the Beatles-Cirque du Soleil show "Love" at the Mirage.
Las Vegas Sands Corp. reported a 27% jump in second quarter profit after the close of trading Wednesday. Company officials cited another record performance by its Macau casino. Then they cited inefficiencies in its operations at the Venetian in Las Vegas. On Thursday, investors traded four million more shares than usual and at the end of the day Las Vegas Sands shares stood at $60.81, off 6.85% ($4.47) on the day.
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