MGM Resorts International (MGM) shares plummeted 5.83% in pre-market trading on Thursday following the release of disappointing third-quarter 2025 financial results. The casino and hospitality giant's earnings fell significantly short of analyst expectations, triggering a sell-off among investors.

The company reported adjusted earnings per share (EPS) of $0.24, well below the $0.40 estimated by analysts polled by IBES. This earnings miss was compounded by a substantial net loss of $285 million for the quarter, translating to a GAAP EPS of -$1.05. The bottom line was heavily impacted by a $256 million non-cash goodwill impairment charge related to the company's decision to withdraw an application for its Empire City casino in Yonkers, New York.

While MGM Resorts managed to slightly exceed revenue expectations with Q3 revenue of $4.25 billion, surpassing analyst estimates of $4.23 billion, the marginal outperformance in top-line growth was not enough to offset investor concerns about profitability. The company's Las Vegas business saw a 7% decline in revenue to $2 billion, attributed to room remodeling at MGM Grand Las Vegas, decreased revenue per available room (RevPAR), lower table games win percentage, and reduced food and beverage revenue. Despite these challenges, MGM China posted record third-quarter results, with revenue growing by 17% year-on-year, helping to partially offset the weakness in Las Vegas operations.

The market's reaction to MGM's earnings report underscores the challenges facing the hospitality and gaming industry as it continues to navigate post-pandemic recovery and economic uncertainties. Investors will be closely watching MGM's performance in the coming quarters to see if the company can improve its profitability while maintaining revenue growth. In response to the earnings miss, several analysts have lowered their price targets for MGM Resorts, including Citigroup, JP Morgan, and Barclays, further contributing to the negative sentiment surrounding the stock.