No bluff: MGM Resorts wins lottery with strong cost cutting plans

Reuters | Updated: Jul 26, 2019, 18:59 IST

** Shares of the casino operator rise 5% to $30.85 premarket** Co said in its conference call that it is on track to achieve its 2020 cost cutting goal and $3.6 bln-$3.9 bln in adj EBITDA and free cash flow/share of $3.50** MGM says during Q2 it cut headcount by 1,070 people, resulting in ~$100 mln of annualized savings** MGM, however, missed quarterly earnings expectations for the third straight quarter** J.P.Morgan says if MGM can execute on its cost cutting plans, ramp newer properties and achieve low to mid-single digit same-store cash flow growth, the lower end of co's EBITDA range is not too hard to achieve; hikes PT to $37 from $33** Telsey Advisory Group notes that co's conference call had a more bullish tone than recent calls and says regional markets will likely outperform going forward on rollout of sports betting; raises PT to $29 from $27** Other gaming stocks also rose with Wynn Resorts Ltd , Melco Resorts and Las Vegas Sands up between 0.1% and 1% (Reporting by Shreyashi Sanyal in Bengaluru)

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