Shares of MGM Resorts International (MGM) are surging 5.53% in pre-market trading on Thursday, following the company's impressive first-quarter 2025 earnings report and the announcement of a new share repurchase program.

The casino and hospitality giant reported adjusted earnings of $0.69 per share for Q1, significantly beating analysts' expectations of $0.47 per share. While this represents a slight decline from $0.74 per share in the same quarter last year, it demonstrates the company's resilience in a challenging economic environment. Revenue for the quarter came in at $4.28 billion, narrowly topping the consensus estimate of $4.29 billion.

In a move that further bolstered investor confidence, MGM's board of directors approved a new $2 billion stock repurchase plan. This comes in addition to the company's existing November 2023 stock repurchase program, signaling management's confidence in the company's financial position and future prospects.

Bill Hornbuckle, CEO of MGM Resorts, commented on the results, stating, "Our outstanding performance demonstrates our deep understanding of customers with continued improvements in service levels. It is also a testament to our team's continuous innovation in crafting compelling experiences for our customers."

The strong quarterly performance and share buyback announcement have prompted several analysts to revise their outlook on MGM stock. Barclays raised its price target to $43 from $41, while Susquehanna adjusted its target to $50 from $45. These positive revisions reflect growing optimism about MGM's future performance and its ability to navigate the current economic landscape.