MGM Resorts (NYSE:MGM) had a big day on Thursday, surging over 17% after reporting better-than-expected Q4 results and pointing to strong growth ahead.

The casino giant posted non-GAAP earnings per share of $0.45, beating estimates by $0.11. Revenue came in at $4.3 billion, down 1.8% from last year, but still $30 million ahead of expectations. Net income dropped to $157 million, down from $313 million a year ago, while adjusted EBITDA stood at $528 million, compared to $632 million in the prior-year quarter.

• Warning! GuruFocus has detected 5 Warning Sign with MGM.

Looking ahead, analysts expect Q1 revenue of $4.28 billion and EPS of $0.50. MGM highlighted some major wins in recent months. December set a record for convention bookings, and January saw continued revenue growth at its Las Vegas Strip Resorts and Regional Operations. The company also reported record slot handle and slot win in December, while Macau traffic jumped 18% year-over-year during Chinese New Year.

The partnership with Marriott International (NASDAQ:MAR) is also paying off, with over 660,000 room nights booked in 2024 and increased spending on leisure package rooms. CEO Bill Hornbuckle said 2025 could be even bigger as all properties will be fully available for bookings. Outside of the U.S., MGM's Japan expansion is moving forward, with ground preparation expected to be completed this year.

The company has scheduled a groundbreaking ceremony in Osaka for April 24. Analysts remain upbeat on MGM's long-term prospects. CBRE Equity Research sees multiple growth drivers, including BetMGM's expected 2025 boost, MGM Digital's projected $200 million in additional EBITDA, and expansion in Japan. The firm also noted MGM's solid domestic and Macau businesses, aggressive share buybacks, and attractive valuation as reasons for investor optimism.

Following the earnings report, Mizuho Securities raised its price target on MGM to $60 from $56, maintaining an Outperform rating. Jefferies reiterated a Buy, with analyst David Katz highlighting share repurchases as a near-term catalyst, while Japan, digital growth, and potential expansion in New York could provide further upside in the years ahead.