MGM Resorts faced a challenging third quarter, with revenue growth meeting Wall Street expectations but profitability metrics missing analyst forecasts. Management attributed the margin pressure to several factors, including higher insurance expenses, renovation disruptions at MGM Grand, and softer occupancy and room rates, especially at mid-tier properties. CEO Bill Hornbuckle acknowledged, “We lost control of the narrative over the summer,” citing guest sensitivity to value in Las Vegas and the need for price corrections at certain properties. The company also pointed to strong performance in Macau and the digital segment as partial offsets to domestic headwinds.

Is now the time to buy MGM? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From MGM Resorts’s Q3 Earnings Call

• John DeCree (CBRE) asked about the decision to exit New York and capital return hurdles. CEO Bill Hornbuckle cited increasing investment risks and compressed returns, while CFO Jonathan Halkyard emphasized prioritizing high-return opportunities, including share buybacks.
• Shaun Kelley (Bank of America) questioned the balance between land-based and digital growth. Halkyard explained that digital investments are now cash generative and the focus is on scaling existing businesses rather than acquisitions.
• Brandt Montour (Barclays) inquired about Macau's strategy amid rising competition. Executive Director Xiaofeng (Kenny) Feng highlighted ongoing investments in premium products and customer experience to maintain market share, rather than aggressive promotional tactics.
• Daniel Politzer (JPMorgan) asked about performance divergence between luxury and mid-tier Las Vegas properties. Hornbuckle and Sanders confirmed that high-end assets like Bellagio and ARIA remain resilient, while Excalibur and Luxor face more challenges, especially midweek.
• Stephen Grambling (Morgan Stanley) probed paths to unlock value, including simplification or divestitures. Hornbuckle pointed to potential digital business unlocks and ongoing cash flows from MGM China and BetMGM, while ruling out immediate organizational changes.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will be watching (1) the pace of Las Vegas recovery, particularly improvements in mid-tier property occupancy and room rates; (2) continued growth and market share gains in the digital segment, especially in Brazil and Europe; and (3) execution of international expansion projects, including progress in Macau and construction milestones in Japan. The company’s ability to maintain capital discipline and optimize its asset portfolio will also be key signposts.

MGM Resorts currently trades at $31.60, up from $31.22 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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