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Gambling Stock Roundup: Las Vegas Sands' Plan Cancellation, Q1 Earnings Releases
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Last week has been pretty disappointing for gambling stocks, with the industry losing 4.3% compared with the S&P 500 Index’s 2.2% fall. The decline can be primarily attributed to the coronavirus pandemic.
Recap of Last Week’s Most Important Stories
Las Vegas Sands Cancels Japan Casino Plan
Las Vegas Sands Corp. (LVS - Free Report) recently abandoned its pursuit of Integrated Resort (IR) development in Japan. The company had been negotiating with the Japanese regulator for more than a decade. The company intends to focus on other opportunities following the decision.
Chairman and CEO Sheldon G. Adelson said, “I remain extremely bullish about the future of our company and its growth prospects. We operate best-in-class properties in the leading markets in our industry and we are currently executing significant investment programs in both Macao and Singapore to create meaningful new growth from our existing portfolio.”
The company currently has a Zacks Rank #3 (Hold).
Melco Resorts & Entertainment Misses Q1 Earnings
Melco Resorts & Entertainment Limited (MLCO - Free Report) reported mixed first-quarter 2020 results, wherein the top line surpassed the Zacks Consensus Estimate but the bottom line missed the same.
The company reported adjusted loss per share of 72 cents, wider than the Zacks Consensus Estimate of loss of 59 cents. In the prior-year quarter, the company had reported adjusted earnings per share of 28 cents.
Quarterly net revenues totaled $811.2 million, surpassing the consensus mark of $632 million by 28.4%. However, net revenues declined 41.4% year over year. The decline can primarily be attributed to the dismal performance in all gaming segments and non-gaming operations on account of the temporary casino closure in Macau.
The company currently carries a Zacks Rank #3.
Eldorado Resorts Beats on Q1 Earnings
Eldorado Resorts, Inc. reported first-quarter 2020 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. However, both the metrics declined sharply year over year.
The Zacks Rank #3 company reported adjusted earnings per share of 11 cents, beating the consensus estimate of 9 cents. In the year-ago quarter, the company had reported adjusted earnings per share of 49 cents.
The company reported revenues of $473.1 million, missing the consensus mark of $554 million. Moreover, it also declined 25.6% year over year. On a same-store basis, revenues decreased 17.5% year over year. Results in the quarter hurt by dismal performance of Midwest, South, East and Central segments.
Caesars Entertainment Q1 Earnings & Revenues Miss
Caesars Entertainment (CZR - Free Report) reported first-quarter 2020 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. The company reported adjusted loss per share of 36 cents, wider than the Zacks Consensus Estimate of loss of 17 cents. In the prior-year quarter, the company had reported adjusted loss of 32 cents. The company reported revenues of $1,828 million, missing the consensus mark of $1,992 million. Moreover, it also declined 13.6% year over year. Results in the quarter were impacted by the coronavirus-induced shutdowns.
The following table shows the price movement of the major gambling stocks in the last week and the last six months:
In the past five trading sessions, shares of PlayAGS, Inc. (AGS - Free Report) and Boyd Gaming Corporation (BYD - Free Report) have lost the most.
Moreover, shares of PlayAGS have lost the most in the past six months.
Today's Best Stocks from Zacks
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
Gambling Stock Roundup: Las Vegas Sands' Plan Cancellation, Q1 Earnings Releases
Last week has been pretty disappointing for gambling stocks, with the industry losing 4.3% compared with the S&P 500 Index’s 2.2% fall. The decline can be primarily attributed to the coronavirus pandemic.
Recap of Last Week’s Most Important Stories
Las Vegas Sands Cancels Japan Casino Plan
Las Vegas Sands Corp. (LVS - Free Report) recently abandoned its pursuit of Integrated Resort (IR) development in Japan. The company had been negotiating with the Japanese regulator for more than a decade. The company intends to focus on other opportunities following the decision.
Chairman and CEO Sheldon G. Adelson said, “I remain extremely bullish about the future of our company and its growth prospects. We operate best-in-class properties in the leading markets in our industry and we are currently executing significant investment programs in both Macao and Singapore to create meaningful new growth from our existing portfolio.”
The company currently has a Zacks Rank #3 (Hold).
Melco Resorts & Entertainment Misses Q1 Earnings
Melco Resorts & Entertainment Limited (MLCO - Free Report) reported mixed first-quarter 2020 results, wherein the top line surpassed the Zacks Consensus Estimate but the bottom line missed the same.
The company reported adjusted loss per share of 72 cents, wider than the Zacks Consensus Estimate of loss of 59 cents. In the prior-year quarter, the company had reported adjusted earnings per share of 28 cents.
Quarterly net revenues totaled $811.2 million, surpassing the consensus mark of $632 million by 28.4%. However, net revenues declined 41.4% year over year. The decline can primarily be attributed to the dismal performance in all gaming segments and non-gaming operations on account of the temporary casino closure in Macau.
The company currently carries a Zacks Rank #3.
Eldorado Resorts Beats on Q1 Earnings
Eldorado Resorts, Inc. reported first-quarter 2020 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. However, both the metrics declined sharply year over year.
The Zacks Rank #3 company reported adjusted earnings per share of 11 cents, beating the consensus estimate of 9 cents. In the year-ago quarter, the company had reported adjusted earnings per share of 49 cents.
The company reported revenues of $473.1 million, missing the consensus mark of $554 million. Moreover, it also declined 25.6% year over year. On a same-store basis, revenues decreased 17.5% year over year. Results in the quarter hurt by dismal performance of Midwest, South, East and Central segments.
Caesars Entertainment Q1 Earnings & Revenues Miss
Caesars Entertainment (CZR - Free Report) reported first-quarter 2020 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. The company reported adjusted loss per share of 36 cents, wider than the Zacks Consensus Estimate of loss of 17 cents. In the prior-year quarter, the company had reported adjusted loss of 32 cents. The company reported revenues of $1,828 million, missing the consensus mark of $1,992 million. Moreover, it also declined 13.6% year over year. Results in the quarter were impacted by the coronavirus-induced shutdowns.
The company currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
The following table shows the price movement of the major gambling stocks in the last week and the last six months:
In the past five trading sessions, shares of PlayAGS, Inc. (AGS - Free Report) and Boyd Gaming Corporation (BYD - Free Report) have lost the most.
Moreover, shares of PlayAGS have lost the most in the past six months.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>