Melco Crown Entertainment Limited Earnings Cheat Sheet: Revenue Grows By Double-Digits For Fifth Straight Quarter

Melco Crown Entertainment Limited (NASDAQ:MPEL) reported net income above Wall Street’s expectations for the third quarter. Melco Crown Entertainment is a holding company which, through its subsidiaries, develops, owns, and operates casino gaming and entertainment resort facilities focused on the Macau market.

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Melco Crown Entertainment Earnings Cheat Sheet for the Third Quarter

Results: Net income for the resort and casino company rose to $113.3 million (21 cents per share) vs. $15.8 million (3 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Rose 45.1% to $1.06 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MPEL beat the mean analyst estimate of 19 cents per share. It beat the average revenue estimate of $963.6 million.

Quoting Management: Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, “I am delighted to announce another quarter of record Adjusted EBITDA and net income for our Company, representing the ninth consecutive quarter of sequential improvement in hold-adjusted EBITDA. These results build on the significant achievements delivered through the first half of 2011 and demonstrate our ability to deliver sustained high-quality results, with strong company-wide performance across all segments, despite the introduction of additional supply in the market.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 58.8%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 92.9% from the year earlier quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 13 cents versus a mean estimate of net income of 11 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 10 cents a share to 16 cents over the last ninety days. The average estimate for the fiscal year is 42 cents per share, a rise from 32 cents ninety days ago.

Competitors to Watch: Melco Crown Entertainment Ltd. (NYSE:MAS), Wynn Resorts, Limited (NASDAQ:WYNN), MGM Resorts International. (NYSE:MGM), Las Vegas Sands Corp. (NYSE:LVS), Century Casinos, Inc. (NASDAQ:CNTY), Ameristar Casinos, Inc. (NASDAQ:ASCA), Asia Entertainment & Resources Ltd. (NASDAQ:AERL), Trans World Corporation (TWOC), Riviera Holdings Corp. (RVHLQ), and Pinnacle Entertainment, Inc (NYSE:PNK).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

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