MGM Resorts Stock Drops After Earnings Miss; Melco Crown Mixed
MGM Resorts International
Estimates: Earnings per share of 21 cents, rebounding from a year-ago loss of 6 cents a share, with revenue up 12% to $2.46 billion.
Results: EPS of 4 cents or 11 cents excluding items on revenue of $2.7 billion. Net revenue at domestic resorts climbed 17% to $1.8 billion. MGM China revenue was virtually flat at $499.7 million.
Stock: Shares of the Las-Vegas-centric company fell 5% to 28.13 in premarket trading on the stock market today. The stock had been which have been making their way through a flat base with a 30.72 buy point
The economy and tourism in Vegas have rebounded, and gross gaming revenues out of global gaming hub Macau were up during the quarter.
However, Macau also reported weaker-than-expected January gaming revenue, an indication that any rebound in the region could be shaky after Beijing launched an anti-money laundering crack down that limited how much cash visitors could take into Macau and withdraw from banks there.
Melco Crown Entertainment
Estimates: Melco Crown Entertainment, a Macau-based casino operator, was expected to report EPS of 13 cents, compared to a year-ago loss of 2 cents a share. Revenue is expected to rise 9.5% to $1.16 billion.
Results: EPS of 9 cents on revenue of $1.19 billion.
"Our flagship property in Macau, City of Dreams, generated adjusted property EBITDA of approximately $190 million, an increase of over 10% compared to the prior quarter, despite an increase in supply in Macau, highlighting the property's ongoing position as a leader in the premium gaming segments in Macau," CEO Lawrence Ho said in a statement.
Stock: Shares popped 4.5% to 18.50 in early trading, clearing a 17.93 buy point.
Earlier Thursday, Melco International Development said it completed the acquisition of an additional 13.4% of the shares of Melco Crown Entertainment, increasing its stake to 51.3%.
Wynn Resorts (WYNN) reported weak earnings last month, but results from a new resort in Macau were solid. Las Vegas Sands (LVS), which relies heavily on Macau for revenue, also reported results last month that missed views.
Wynn shares dipped 0.1% Thursday, and Las Vegas Sands lost 0.1%.