Compass Point on Macau Gaming: August Gaming Revenues Show Some Stabilization, But Will it Last?
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Today's Overall Ratings:
Up: 9 | Down: 12 | New: 19
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 9 | Down: 12 | New: 19
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Compass Point on Macau Gaming: August Gaming Revenues Show Some Stabilization, But Will it Last?
Analyst, Mike Turner, said, "August gaming revenues. The DICJ reported that Macau gross gaming revenues for the month of August were 26.1B patacas, or 5.5% Y/Y, which is in-line with what we believe were expectations of 26B-27B. On a M/M basis, the 26.1B monthly figure represents an increase of 6.3%, which is stronger than the trend exhibited in the last several years and the Y/Y change represents an acceleration from the prior month. That said, one month does not make a trend and August still remains weak when compared to the 2Q average. The macro data out of Asia continues to remain weak and suggests further softening. Nonetheless, we are cognizant of the August figures and should the next several months exhibit stability, our more negative macro view would need to be revisited."
"...if monthly revenues remain flat at August levels for the remainder of FY12/13, that
would imply +13% growth in FY12 and 3% in FY13. That's 10% below where we believe the FY13 consensus forecast is."
Compass Point maintains a 'Sell on Las Vegas Sands (NYSE: LVS)(PT$32), Wynn (Nasdaq: WYNN)(PT $95) and Melco Crown (Nasdaq: MPEL)
Analyst, Mike Turner, said, "August gaming revenues. The DICJ reported that Macau gross gaming revenues for the month of August were 26.1B patacas, or 5.5% Y/Y, which is in-line with what we believe were expectations of 26B-27B. On a M/M basis, the 26.1B monthly figure represents an increase of 6.3%, which is stronger than the trend exhibited in the last several years and the Y/Y change represents an acceleration from the prior month. That said, one month does not make a trend and August still remains weak when compared to the 2Q average. The macro data out of Asia continues to remain weak and suggests further softening. Nonetheless, we are cognizant of the August figures and should the next several months exhibit stability, our more negative macro view would need to be revisited."
"...if monthly revenues remain flat at August levels for the remainder of FY12/13, that
would imply +13% growth in FY12 and 3% in FY13. That's 10% below where we believe the FY13 consensus forecast is."
Compass Point maintains a 'Sell on Las Vegas Sands (NYSE: LVS)(PT$32), Wynn (Nasdaq: WYNN)(PT $95) and Melco Crown (Nasdaq: MPEL)
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