Here’s Why Casino Stocks are Unlucky Now
Wynn Resorts (NASDAQ:WYNN) reported third quarter numbers with revenues at $1.30B, up 29% Y-O-Y and earnings per share of $1.05. EPS was off analysts’ expectations by $0.11.
Shares fell, reflecting the market’s disappointment over lower win-rate percentage from its Las Vegas operations, even though revenue at its Macau unit was up a whopping 42%. CEO Steve Wynn also dashed investors’ hopes for a special dividend, saying the company had no such plans for such a payment.
However, Commenting on the EPS being lower than expectations, Morningstar (NASDAQ:MORN) analyst Chad Mollman said “the main reason for the shortfall was that they had an unlucky month for Wynn Las Vegas. If you adjust the EPS number to a normalized hold number, earnings were basically in line.”
The company’s net profit was $127.1 million ($1.01 per share) compared to a last year loss of $33.5 million ($0.27 per share).
Other casino stocks are falling on fears the bad luck will spread:
- Las Vegas Sands (NYSE:LVS): The shares recently traded at $41.82, down $1.55, or 3.57%, on the day. The shares have traded in a 52-week range of $36.05 to $55.47 and its market capitalization is $30.50 billion. About the company: Las Vegas Sands Corp. owns and operates casino resorts and convention centers. The Company operates in United States, Macau and Singapore. Las Vegas Sand Corp’s casino’s offer a wide range of gaming activities and entertainment as well as overnight accommodations, while its expo centers host a wide range of entertainment shows, expositions, and other activities.
- MGM Resorts International (NYSE:MGM): The shares recently traded at $9.86, down $0.24, or 2.38%, on the day. The shares have traded in a 52-week range of $7.40 to $16.94 and its market capitalization is $4.83 billion. About the company: MGM Resorts International operates gaming, hospitality and entertainment resorts. The Company owns properties in Nevada, Mississippi and Michigan in the United States; and owns interests in properties in Nevada and Illinois in the United States, and Macau. MGM Resorts also offers hospitality management services for casino and non-casino properties around the world.
- Melco Crown Entertainment (NASDAQ:MPEL): The shares recently traded at $9.50, down $0.43, or 4.33%, on the day. The shares have traded in a 52-week range of $5.32 to $16.15 and its market capitalization is $5.07 billion. About the company: Melco Crown Entertainment. Ltd. develops, owns and operates casino gaming and entertainment resort facilities.
(Note: Selected financial data are sourced from Google Finance. All data are assumed to be accurate.)
Improve Your 2011 Financial Health: Join the winning team of stock pickers with Wall St. Cheat Sheet’s acclaimed premium newsletter>>