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Casino Stocks to Watch for Earnings on Nov 3: LVS, MPEL, ERI
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We are in the second half of the Q3 earnings season, with 332 of the S&P 500 members having already reported their quarterly numbers (as of Nov 1), per the latest Earnings Outlook.
Turning our focus to the casino stocks, we note that a fall in gaming revenues in Macau since Jun 2014, given the crackdown on corruption in China, continued to impact the casino companies in the first half of 2016.
However, per the Macau Gaming Inspection and Coordination Bureau, though gross gaming revenues (GGR) for the month of July fell 4.5%, it rose in August and September by 1.1% and 7.4%, respectively, on a yearly basis. This indicates that the Macau market might be on the recovery path. Thus, it remains to be seen if the companies can mark a turnaround in the region in the third quarter.
Meanwhile, the casino stocks’ properties in Las Vegas are likely to continue to cash in on the positive trends of improving employment rate and increasing tourism numbers in the region.
Three casino stocks are set to report their third-quarter 2016 results on Nov 3. Will these companies manage to put up a decent performance? Let’s take a look at what might be in store for them this quarter:
Las Vegas Sands Corp. (LVS - Free Report) posted a negative earnings surprise of 7.14% last quarter. In fact, the company’s earnings lagged the Zacks Consensus Estimate in three of the last four quarters, with an average miss of 7.93%.
Notably, our proven model shows that an earnings beat is unlikely for Las Vegas Sands in the quarter. This is because, according to our quantitative model, a company needs the right combination of the two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase its odds of an earnings surprise. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For the quarter, the company has an Earnings ESP of -3.39% and a Zacks Rank #3. Notably, the Zacks Consensus Estimate for the quarter’s bottom line is pegged at 59 cents.
Las Vegas Sands’ consistent efforts to boost tourism and traffic in Macau along with growth in the mass markets and diversification of non-gaming options should boost the quarterly results.
Our previous article showed that Las Vegas Sands is likely to beat earnings this quarter. However, estimates changed thereafter and we are no longer confident about an earnings beat.
Melco Crown Entertainment Limited posted a 66.67% positive earnings surprise in the last reported quarter. In fact, the company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 49.17%.
Notably, the Zacks Consensus Estimate for the quarter’s earnings is pegged at 4 cents. We expect better performance at the non-gaming segments like rooms and food and beverages to drive the quarter’s results. Also, the company’s cost-control efforts are likely to boost third-quarter profits and margins. Meanwhile, performance in Macau is also expected to get a boost in the quarter (read more: Can Melco Crown Pull a Surprise in Q3 Earnings?).
Based in Reno, NV, Eldorado Resorts, Inc. is unlikely to post a beat in the quarter due to the combination of its Zacks Rank #3 and Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 30 cents.
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
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Casino Stocks to Watch for Earnings on Nov 3: LVS, MPEL, ERI
We are in the second half of the Q3 earnings season, with 332 of the S&P 500 members having already reported their quarterly numbers (as of Nov 1), per the latest Earnings Outlook.
Turning our focus to the casino stocks, we note that a fall in gaming revenues in Macau since Jun 2014, given the crackdown on corruption in China, continued to impact the casino companies in the first half of 2016.
However, per the Macau Gaming Inspection and Coordination Bureau, though gross gaming revenues (GGR) for the month of July fell 4.5%, it rose in August and September by 1.1% and 7.4%, respectively, on a yearly basis. This indicates that the Macau market might be on the recovery path. Thus, it remains to be seen if the companies can mark a turnaround in the region in the third quarter.
Meanwhile, the casino stocks’ properties in Las Vegas are likely to continue to cash in on the positive trends of improving employment rate and increasing tourism numbers in the region.
Three casino stocks are set to report their third-quarter 2016 results on Nov 3. Will these companies manage to put up a decent performance? Let’s take a look at what might be in store for them this quarter:
Las Vegas Sands Corp. (LVS - Free Report) posted a negative earnings surprise of 7.14% last quarter. In fact, the company’s earnings lagged the Zacks Consensus Estimate in three of the last four quarters, with an average miss of 7.93%.
LAS VEGAS SANDS Price and EPS Surprise
LAS VEGAS SANDS Price and EPS Surprise | LAS VEGAS SANDS Quote
Notably, our proven model shows that an earnings beat is unlikely for Las Vegas Sands in the quarter. This is because, according to our quantitative model, a company needs the right combination of the two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase its odds of an earnings surprise. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For the quarter, the company has an Earnings ESP of -3.39% and a Zacks Rank #3. Notably, the Zacks Consensus Estimate for the quarter’s bottom line is pegged at 59 cents.
Las Vegas Sands’ consistent efforts to boost tourism and traffic in Macau along with growth in the mass markets and diversification of non-gaming options should boost the quarterly results.
Our previous article showed that Las Vegas Sands is likely to beat earnings this quarter. However, estimates changed thereafter and we are no longer confident about an earnings beat.
Melco Crown Entertainment Limited posted a 66.67% positive earnings surprise in the last reported quarter. In fact, the company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 49.17%.
MELCO CROWN ENT Price and EPS Surprise
MELCO CROWN ENT Price and EPS Surprise | MELCO CROWN ENT Quote
For the quarter, we cannot conclusively predict as earnings beat as the company has an Earnings ESP of 0.00%, and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, the Zacks Consensus Estimate for the quarter’s earnings is pegged at 4 cents. We expect better performance at the non-gaming segments like rooms and food and beverages to drive the quarter’s results. Also, the company’s cost-control efforts are likely to boost third-quarter profits and margins. Meanwhile, performance in Macau is also expected to get a boost in the quarter (read more: Can Melco Crown Pull a Surprise in Q3 Earnings?).
Based in Reno, NV, Eldorado Resorts, Inc. is unlikely to post a beat in the quarter due to the combination of its Zacks Rank #3 and Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 30 cents.
ELDORADO RESRTS Price
ELDORADO RESRTS Price | ELDORADO RESRTS Quote
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>