Melco Crown Entertainment Earnings: Here’s Why Shares are Up Now

Melco Crown Entertainment Ltd. (NASDAQ:MPEL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.69%.

Melco Crown Entertainment Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 120% to $0.33 in the quarter versus EPS of $0.15 in the year-earlier quarter.

Revenue: Rose 37.98% to $1.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Melco Crown Entertainment Ltd. reported adjusted EPS income of $0.33 per share. By that measure, the company beat the mean analyst estimate of $0.28. It beat the average revenue estimate of $1.21 billion.

Quoting Management: Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, “I am pleased to report another successive quarter of record earnings and EBITDA, building on the strong momentum in the first quarter of 2013. Highlighting the ideal strategic positioning of our flagship property, City of Dreams, this premium-mass focused property once again captured meaningful market share in the mass market table games segment which, in turn, has been the major driver of our impressive group-wide performance in the second quarter of 2013. City of Dreams’ unique ability to cater towards these highly discerning, premium mass market-focused customers is highlighted by our market-leading mass table yields, which is increasingly important in a table supply constrained market.”

Key Stats (on next page)…

Revenue increased 13.11% from $1.14 billion in the previous quarter. EPS increased 37.5% from $0.24 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.23 to a profit $0.25. For the current year, the average estimate has moved up from a profit of $0.97 to a profit of $1.04 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)