Macau, Singapore Bolster Las Vegas Q2 Profit (LVS, BYD, MGM, MPEL, ISLE, WYNN)
Shares of Las Vegas Sands (LVS), the operator of the Palazzo and Venetian resorts, are up 3% after the company posted a second-quarter profit of $367.6 million, or 45 cents a share, compared with a net loss of $4.7 million, or 1 cent a share, a year earlier. Revenue rose 47% to $2.35 billion. The good news from Sands isn’t doing much to help the casino sector at large as the Casino Stocks Index is down 1%.
Sands cited improved business in Macau and Singapore as catalysts behind the strong quarter. The company, which earns most of its money overseas, said its newly opened resort in Singapore is its most profitable property, according to Reuters. Macau, the only Chinese territory where gambling is legal, has long since passed Las Vegas as the world’s largest gambling mecca and Singapore is expected to take the number two spot in the coming years.
Revenue for Sands’ China unit climbed over 16% to $1.21 billion during the quarter. Analysts liked the Sands results as Brean Murray raised its price target on the stock to $59 from $53. Stifel Nicolaus raised its price target on Sands to $58 from $55.
Shares of Boyd Gaming (BYD) are slumping 3% after the company reported an adjusted second-quarter profit of a penny a share while analysts were expecting 2 cents a share. Revenue fell 1% to $574.4 million. Boyd recently passed on buying MGM Resorts International’s (MGM) stake in the Borgata Hotel & Spa in Atlantic City, New Jersey.
Macau player Melco Crown Entertainment (MPEL) is up 1% after Citigroup reiterated a “buy” rating on the stock and raised its estimates and its price target to $19.10 from $13.10 citing improved momentum and the opening of the new Galaxy Macau resort. Isle of Capri Casinos (ISLE) and Wynn Resorts (WYNN) are both down 2%.
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