Macau Gaming Below Views So Far this Month - Wells Fargo

July 9, 2012 1:13 PM EDT
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Based on a very early read of Macau gaming revenue, July is not shaping up to be a very good month. Analysts at Wells Fargo said July is tracking below expectations so far.

"We believe Macau table gaming revenue paced at HK$739MM/day over the first eight days of July, up 2% on a disappointing June result, and 3% below the year-to-date average," the analyst said.

They note, however, that this is a "very early read" and the results will likely fluctuate through the month.

Still, extrapolating last week's results out for a full month would imply just 0-5% year-over-year growth for July, which would clearly disappoint against Street estimates of roughly 7% and fuel incremental investor fears of potential negative 2nd-half comps.

The firm is maintaining their Macau theme of "growth slowing, risks increasing."

The comments have implications for Macau gaming stocks including: Wynn Resorts Ltd. (Nasdaq: WYNN), Las Vegas Sands Corp. (NYSE: LVS), MGM Resorts International (NYSE: MGM) and Melco Crown Entertainment Limited (Nasdaq: MPEL).

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