CHICAGO, Dec. 3, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Las Vegas Sands Corp. (NYSE:LVS-Free Report), MGM Resorts International (NYSE:MGM-Free Report), Melco Crown Entertainment Limited (Nasdaq:MPEL-Free Report) and Wynn Resorts Ltd. (Nasdaq:WYNN-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday's Analyst Blog:
Macau Revenues Nosedive, 2015 Outlook Weak
Macau gross gaming revenues declined in double digits rate yet again. According to Macau's Gaming Inspection and Coordination Bureau, revenues for the month of November nosedived 19.6% to 24.3 billion patacas – marking the sixth consecutive monthly decline this year. After declining in single digits for three consecutive months beginning June, revenues declined 11.7% and 23.2% in Sep and Oct 2014, respectively.
Why the Downward Movement?
This slump reflects a slowdown in Macau as a result of high-stake gamblers curtailing spending amid a cooling Chinese economy. Also, the nationwide crackdown on corruption in China has compelled Macau officials to impose restrictions on high rollers in order to stop billions of dollars from being siphoned off illegally from mainland China to Macau.
Restrictions like limiting the use of state-backed payment processor UnionPay is making it harder for players to obtain cash to gamble. Moreover, tighter restrictions on visas are further worsening the situation.
Meanwhile, the political unrest and pro-democracy demonstrations in Hong Kong are compounding woes. Per analysts, the effect of a smoking ban on mass market gaming floors in October had been negligible.
Share Price Declines
The decline in revenues was roughly in-line with analysts' expectation of a decline of 19.3% as reported by Bloomberg. However, shares of Las Vegas Sands Corp. (NYSE:LVS-Free Report), MGM Resorts International (NYSE:MGM-Free Report), Melco Crown Entertainment Limited (Nasdaq:MPEL-Free Report) and Wynn Resorts Ltd. (Nasdaq:WYNN-Free Report) that earn a major part of revenues fell on Dec 1, which reflects the continued weakness in the region. Revenues are once again expected to decline in double digits in December given the persistent weakness in China.
Gambling revenue was up 16% year over year from January through May. However, after six months of consecutive declines gambling revenues for the first 11 months now stand flat year over year. Per analysts, this sets up the region to pose its first annual revenue decline at least since 2002.
What Lies Ahead?
The worst is not yet over with analysts expecting further declines in 2015 also. Given the timing of the Chinese New Year in 2015 on Feb 19 versus Jan 31 in 2014, some analysts once again expect a double-digit decline in the first month of the New Year. In fact, no improvement is expected until the second quarter of 2015.
We on our part can only wait and see how long the slowdown in Macau lasts and impacts the companies operating in the region.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on LVS - FREE
Get the full Report on MGM - FREE
Get the full Report on MPEL - FREE
Get the full Report on WYNN - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the-zacks-analyst-blog-highlightslas-vegas-sands-mgm-resorts-international-melco-crown-entertainment-and-wynn-resorts-300004120.html
SOURCE Zacks Investment Research, Inc.
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article