MGM Resorts International (NYSE: MGM) reported second-quarter 2014 results before markets opened on Tuesday. The casino and resort operator posted diluted earnings per share (EPS) of $0.21 on revenues of $2.58 billion. In the same period a year ago, the company reported an EPS loss of $0.19 on revenues of $2.48 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.11 and $2.57 billion in revenues.

After three disappointing quarters in a row, MGM Resorts posted positive earnings in the first quarter of this year and has followed that up with another solid earnings beat this quarter. The uptick is due to better performance at domestic resorts now that revenues seem to have stalled a bit in China. Domestic revenue rose 6% in the quarter, while MGM China’s revenue slipped 1%.

The company did not offer guidance, but the consensus estimates call for third quarter EPS of $0.06 on revenues of $2.59 billion. For the full year, analysts estimate EPS of $0.51 on revenues of $10.43 billion. In the first six months of the year MGM Resorts has posted EPS of $0.43, so we should look for a hike in analysts’ EPS estimates and very likely a boost to revenue estimates as well.

The company’s CEO said:

Our domestic business was very strong with 12% EBITDA growth in Las Vegas driven by strong performance in both our room and casino segments. CityCenter resort operations continue to improve while in Macau we grew cash flow and margins due to a higher contribution of revenues from our main floor business.

The two-year run of booming business in Macau has apparently run its course. From the beginning of the boom in early 2012 to the end of last year, MGM Resorts saw its stock price rise 125%. So far in 2014, the stock price is up 11.5%, but the rise is due largely to domestic business.

Shares were up about 2% in premarket trading, at $26.98 in a 52-week range of $16.75 to $28.75. The consensus target price for the shares was around $31.00 before the report.

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