Net income for the second quarter more than doubled to $360.2 million, or $1.22 a share, from $146.4 million, or 50 cents, a year earlier, MGM said. That beat analysts' estimates by 4 cents.
``They've emerged as the barometer of the Las Vegas Strip,'' said Robert LaFleur, an analyst with Wall Street's Susquehanna Financial Group. "As goes the Las Vegas Strip, so goes MGM."
The company is majority owned by billionaire Kirk Kerkorian, and has 10 casinos on the Las Vegas Strip, including the Mirage, the Luxor, and the Bellagio. The company is also expanding with the $7.4 billion Project CityCenter, set to open in 2009, and a joint venture in Macau, China.
Seeking Alternatives
Revenue rose 10 percent to $1.94 billion, the company said.The company's shares have climbed 15 percent before since May 21, when Kerkorian said he was considering "alternatives" for his investment.
Analysts estimated average second-quarter profit of 58 cents a share. They projected sales of $1.91 billion.
But, profit was helped by a pretax gain of $264 million from the sale of casinos.
MGM Mirage, which trails only Harrah's Entertainment Inc. in size, is developing a casino in Macau with Pansy Ho, daughter of Chinese gambling mogul, Stanley Ho. Macau is the only region in China where gambling is legal.
MGM also owns and runs casinos in Detroit, Mississippi and Illinois and co-owns the Borgata Hotel, Casino and Spa in Atlantic City, New Jersey, with Boyd Gaming Corp., the company said.
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