Macau Gaming Stocks on Watch Following Oct. Revenue Data (LVS) (MGM) (WYNN) (MPEL)

Macau gaming stocks are on watch after October gross gaming revenue data showed a declined 23.2%. Stock effected include Las Vegas Sands (NYSE: LVS), Wynn Resorts Ltd (NASDAQ: WYNN), MGM (NYSE: MGM), and Melco Crown (NASDAQ: MPEL).

Commenting on the news analyst Carlo Santarelli of Deutsche Bank said, October was up 9.6% on a sequential basis, again breaking sequential form and coming in roughly 1,330 bps below the average sequential decline of the last four years (+22.9%). Recall, several operators noted VIP hold was a factor in the period, however, we would remind investors that the y/y hold comparison was tough (~15 bps higher than the LTM average) and that estimates likely incorporated the year over year hurdle to some extent."

"We believe mass growth integrity remains the directional key for the stocks over the near term given already reduced VIP expectations. We anticipate further color on segment performance later this week and we anticipate mass results will serve as a driver for stocks in the near term, with a bogey in the mid single digit range for the mass segment (tables and slots) for the month. The current YTD growth rate stands at +2.3%," he added.

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