Despite analyst chatter about Las Vegas making a recovery this year, led by MGM Resorts, shares of the company are down over 3%.
MGM’s revenue rose to $1.47 billion from $1.45 billion but overall its earnings report was on the weak side.
- MGM posted a fourth quarter loss of $0.20 per share compared with analyst estimates of $0.22
- Net loss was $139.2 million or $0.29 a share compared with a net loss of $433.9 million or $0.98 a share in 2009
- MGM has fallen short of earnings forecasts in three of the past four quarters.
MGM CEO Jim Murren said in a press release he believes the company is positioned to have a better year than 2010.
Last week Wynn Resorts’ shares were up after coming out ahead of its earnings with a revenue of $114.2 million for the year which analysts said was partly driven by growth in Vegas.
Now of course revenue growth in Vegas is modest compared to these companies’ operations in Macau but analysts believe Las Vegas’ stabilizing strength will drive improvement for the industry as well.