Casino Stocks Weaker as Macau Numbers Could Disappoint
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Price: $47.03 +2.31%
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Casino stocks are trading lower today as an analyst at Wells Fargo notes Macau's January revenues may come in below analyst expectations.
The firm forecasts total revenue of MOP24.3 billion, an increase of 31 percent year over year, while the Street's consensus calls for MOP28 billion in revenue for the month of January in Macau.
Cameron McKnight, the analyst at Wells Fargo, highlights that February revenues may fall as much as 14 percent year-over-year due to the Chinese New Year and calendar shift. Despite the calendar shift, Mr. McKnight estimates revenues are trending down and sees total revenue growth of 8 percent for the months of January and February combined, well below the 14 percent growth seen during the month of December.
Looking ahead, Wells Fargo only anticipates a 3 percent increase in revenue growth for the month of March.
Wells Fargo has a Market Weight rating on the gaming sector as a whole and a Market Perform rating on both Las Vergas Sands (NYSE: LVS) and Wynn Resorts (Nasdaq: WYNN). The firm has Outperform ratings on both Melco Crown Entertainment (Nasdaq: MPEL) and MGM (NYSE: MGM).
The firm forecasts total revenue of MOP24.3 billion, an increase of 31 percent year over year, while the Street's consensus calls for MOP28 billion in revenue for the month of January in Macau.
Cameron McKnight, the analyst at Wells Fargo, highlights that February revenues may fall as much as 14 percent year-over-year due to the Chinese New Year and calendar shift. Despite the calendar shift, Mr. McKnight estimates revenues are trending down and sees total revenue growth of 8 percent for the months of January and February combined, well below the 14 percent growth seen during the month of December.
Looking ahead, Wells Fargo only anticipates a 3 percent increase in revenue growth for the month of March.
Wells Fargo has a Market Weight rating on the gaming sector as a whole and a Market Perform rating on both Las Vergas Sands (NYSE: LVS) and Wynn Resorts (Nasdaq: WYNN). The firm has Outperform ratings on both Melco Crown Entertainment (Nasdaq: MPEL) and MGM (NYSE: MGM).
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