Strip Revs Dip 12.8% in November, But There are Some Positives... (LVS) (MGM) (WYNN)
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Price: $57.80 -1.5%
Rating Summary:
18 Buy, 7 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
18 Buy, 7 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Trade LVS Now!
Gaming stocks are mixed on the session following data out of Nevada showing a 12.8 percent drop in gaming revs in November.
Sterne Agee wasn't satisfied with the top-line number. Digging deeper, the firm found a few key bits of information that may offset the initial read.
For instance, slot handle rose 3.8 percent for the month, more than erasing a 3.7 percent drop in October. Blackjack drop was a positive 10.3 percent, from a negative 2.0 percent result in October. The firm sees both of these metrics as a positive.
Table drop less baccarat was 4.9 percent, though Sterne doesn't consider baccarat a "core" game. Sterne Agee sees slot handle as the best "core" game read-through for leisure trends.
Sterne Agee said results would be an incremental positive for MGM International (NYSE: MGM), Wynn Resorts (Nasdaq: WYNN), and Las Vegas Sands (NYSE: LVS). The Las Vegas Strip accounts for ~54% of MGM property EBITDA, 25% of WYNN property EBITDA, and 9% of LVS property EBITDA.
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Sterne Agee wasn't satisfied with the top-line number. Digging deeper, the firm found a few key bits of information that may offset the initial read.
For instance, slot handle rose 3.8 percent for the month, more than erasing a 3.7 percent drop in October. Blackjack drop was a positive 10.3 percent, from a negative 2.0 percent result in October. The firm sees both of these metrics as a positive.
Table drop less baccarat was 4.9 percent, though Sterne doesn't consider baccarat a "core" game. Sterne Agee sees slot handle as the best "core" game read-through for leisure trends.
Sterne Agee said results would be an incremental positive for MGM International (NYSE: MGM), Wynn Resorts (Nasdaq: WYNN), and Las Vegas Sands (NYSE: LVS). The Las Vegas Strip accounts for ~54% of MGM property EBITDA, 25% of WYNN property EBITDA, and 9% of LVS property EBITDA.
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