The Zacks Analyst Blog Highlights: Wynn Resorts, Las Vegas Sands, MGM Resorts International, Melco Crown Entertainment and Fairchild Semiconductor International

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Aug 05, 2014, 09:30 ET

CHICAGO, Aug. 5, 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 Wynn Resorts Ltd. (Nasdaq:WYNN-Free Report), Las Vegas Sands Corp. (NYSE:LVS-Free Report), MGM Resorts International (NYSE:MGM-Free Report), Melco Crown Entertainment Limited (Nasdaq:MPEL-Free Report) and Fairchild Semiconductor International Inc. (Nasdaq:FCS-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday's Analyst Blog:

Macau Gaming Revenues Decline for Second Straight Month

Total gross gaming revenue declined 3.6% in July to $28.4 billion, according to Macau's Gaming Inspection and Coordination Bureau. This was the second successive month of decline after a 3.7% fall in June. Share prices of leading U.S-based casino operators, Wynn Resorts Ltd. (Nasdaq:WYNN-Free Report), Las Vegas Sands Corp. (NYSE:LVS-Free Report), MGM Resorts International (NYSE:MGM-Free Report), and Melco Crown Entertainment Limited (Nasdaq:MPEL-Free Report) who earn a majority of their revenues from Macau declined in response.

Though casino revenues in Macau were up 13% in the first quarter, it declined 11% in the second quarter. This represents the first sequential decline since the second quarter of 2012.

The revenue decline reflects the effect of the World cup that began on Jul 12 and ended on Jul 13, 2014. The Chinese are huge soccer fans and therefore they opted to stay back and watch the games instead of going out to gamble. Given the 3.7% decline in June, analysts had already expected a decline in the range of 2% to 5% for the month of July.

Reaction

Given the June and July results, a few analysts expect downward estimate revisions for the third quarter due to near-term headwinds and limited positive catalysts. They expect 2014 to remain choppy with VIP growth expected to remain weak in the fourth quarter of this year.

According to the Secretary for Economy and Finance, the casino industry is entering into a stable development phase after experiencing robust growth for quite a long period of time. As a result, gaming revenues are expected to grow only in single digits this year.

Conclusion

China's crackdown on illegal money transfers, credit growth concerns, potential for tighter restrictions on visas and an impending smoking ban in casinos continue to adversely affect revenues of the companies in the Macau region. Nevertheless, analysts are optimistic about prospects in Macau and Japan over the long-term.

Currently, MGM Resorts, Wynn Resorts, and Las Vegas Sands carry a Zacks Rank #3 (Hold) while Melco Crown carries a Zacks Rank #4 (Sell).

Fairchild Semiconductor Upped to Strong Buy Following Q2 Earnings

Zacks Investment Research upgraded Fairchild Semiconductor International Inc. (Nasdaq:FCS-Free Report) to a Zacks Rank #1 (Strong Buy) from a Zacks Rank #2 (Buy) on Aug 2. This was primarily due to upward estimate revisions in response to robust second-quarter 2014 results announced on Jul 17.

Why the Upgrade?

The semiconductor stock reported second-quarter adjusted earnings of 20 cents per share, up 400% year over and year and significantly ahead of the Zacks Consensus Estimate of 11 cents per share. Strong revenues, higher utilization and an improved product mix contributed to the earnings beat.

Fairchild Semiconductor saw healthy year-over-year growth in sales, driven by superior execution and broad-based demand strength. Results benefited from strong demand across most end markets, especially for mobile and automotive segments.

Moreover, Fairchild Semiconductor is set to explore the lucrative 3D motion tracking market with its recent acquisition of Xsens, a Netherlands-based global supplier of 3D motion tracking products for the industrial, health, fitness and entertainment markets.

Looking ahead, the company anticipates continued revenue growth in its automotive and mobile segments, while its industrial segment is expected to gain more traction in the coming quarters.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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